When do you encounter the problem of multicollinearity? What are the remedial measures for the problem of multicollinearity?

Multicollinearity arises in econometric models when two or more explanatory variables are highly correlated with each other. This issue complicates the estimation of regression coefficients, making it difficult to determine the individual effect of each independent variable on the dependent variable. Essentially, multicollinearity causes redundancy in the predictors, leading to imprecise estimates and unreliable statistical inferences.

The problem of multicollinearity is commonly encountered when there is a high degree of correlation between two or more independent variables in a regression model. This could happen due to several reasons. For instance, it could result from the inclusion of variables that represent similar concepts, such as adding both "education level" ______ ___ ________ _______ ______ __________ ______ ______ ______.
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