I am using the following code
xtreg recycling loginc logpopden gcses alevels md11 md12 md13 md14 md15 md16 md17 md18 md19 md20 md21 md22 md23 md24 md25 md26 md27 md28 md29 md291 wasteavg dryavg quarter2 quarter3 quarter4 year2 year3 year4 year5, fe vce(cluster acode)
There is a pwcorr of 0.44 between alevels and gcses, so I suspect no multicollinearity.
However when I run
vif, uncentered
I get the following results. I don't know how to interpret these results and what to do with them. I have never used vif command before. Thank you
Variable | VIF 1/VIF
-------------+----------------------
loginc | 236.36 0.004231
gcses | 188.65 0.005301
logpopden | 13.28 0.075327
alevels | 10.53 0.094996
md17 | 7.59 0.131731
md12 | 6.67 0.149955
md15 | 6.44 0.155223
dryavg | 5.48 0.182631
md11 | 3.92 0.254828
md27 | 3.85 0.259701
wasteavg | 2.88 0.347274
md28 | 2.73 0.366574
md22 | 2.51 0.398896
md14 | 2.29 0.436294
year5 | 2.28 0.438546
year4 | 2.17 0.459991
year3 | 2.12 0.470777
year2 | 2.08 0.480658
md18 | 2.08 0.481430
md24 | 2.02 0.494153
quarter3 | 2.00 0.500285
quarter4 | 2.00 0.500285
quarter2 | 2.00 0.500285
md23 | 1.86 0.537648
md26 | 1.84 0.544478
md291 | 1.69 0.592504
md21 | 1.49 0.669333
md29 | 1.31 0.765507
md13 | 1.30 0.769849
md16 | 1.30 0.770104
md19 | 1.29 0.775184
md20 | 1.20 0.830814
md25 | 1.08 0.930047
-------------+----------------------
Mean VIF | 15.95
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