Influence of human capital and institutional quality on unemployment at 4.0 Industrial Revolution: study application of Asian countries

By using a combination of several regression techniques on panel data, this study explores the influence of human capital, institutional quality, and the Fourth Industrial Revolution on unemployment rates in Asian countries during the period from 2007 to 2020. According to the generalised method of moments (GMM), there are a total of 9 factors affecting the unemployment rate in the researched model, including high-tech exports, inflation, population, gross domestic product, government spending, foreign debt, foreign direct investment, human capital, and institutions. This result confirmed that high-tech development creates a higher number of unemployed workers in Asia. However, the nexus between human capital as well as institutional situation and unemployment rate is different based on their fields. Moreover, some policy implications also have been suggested to reduce unemployment in Asian countries in the context of the Fourth Industrial Revolution. The findings are important to improve social-economic and enterprise policies and decision-making with the proposal to create value. Findings have proven that the Fourth Industrial Revolution is a concern for unemployment in Asian countries. Therefore, policymakers need to focus on investing in human capital, considered an important factor in each country.