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The Impact of Advanced Technology Adoption on Wage Structures: Evidence from Taiwan Manufacturing Firms

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  • Jin‐Tan Liu
  • Meng‐Wen Tsou
  • James K. Hammitt

Abstract

We examine the impact of advanced technology adoption on wage and employment structures in Taiwan. Using a survey of manufacturing firms that provides direct information on the use of advanced technologies, we find that firms using more advanced technologies pay higher wages to both non‐production and production workers and employ higher fractions of non‐production workers. Controlling for the possible endogeneity of technology adoption suggests that the estimated impact of new technologies on wages is downward‐biased and that the effect on production workers’ wages may be minimal.

Suggested Citation

  • Jin‐Tan Liu & Meng‐Wen Tsou & James K. Hammitt, 2001. "The Impact of Advanced Technology Adoption on Wage Structures: Evidence from Taiwan Manufacturing Firms," Economica, London School of Economics and Political Science, vol. 68(271), pages 359-378, August.
    • Handle: RePEc:bla:econom:v:68:y:2001:i:271:p:359-378
    DOI: 10.1111/1468-0335.00251
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    Cited by:

    1. Andy Dickerson & Francis Green, 2002. "The Growth and Valuation of Generic Skills," Studies in Economics 0203, School of Economics, University of Kent.
    2. Liu, Jin-Tan & Tsou, Meng-Wen & Hammitt, James K., 2004. "Computer use and wages: evidence from Taiwan," Economics Letters, Elsevier, vol. 82(1), pages 43-51, January.
    3. James P. Vere, 2005. "Wage Structure Effects of Taiwan's Science and Technology Development Policy," Asian Economic Journal, East Asian Economic Association, vol. 19(2), pages 159-180, June.
    4. Natália Barbosa & Ana Faria, 2008. "Technology adoption: does labour skill matter? Evidence from Portuguese firm-level data," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 35(2), pages 179-194, April.
    5. Ahmed Waqar Qasim, 2023. "Firms and Technology Adoption: The Role of Political Institutions and Market Size (Article)," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 62(1), pages 61-85.
    6. Suh, Joong hae, 2015. "Adoption of Foreign Technologies in Korean Manufacturing Firms: Characteristics and Microfoundations," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 37(3), pages 75-106.
    7. Görg, Holger & Strobl, Eric, 2002. "Relative Wages, Openness and Skill-Biased Technological Change," IZA Discussion Papers 596, Institute of Labor Economics (IZA).
    8. Hinh T. Dinh, 2017. "Jobs, Industrialization, and Globalization," Books & Reports, Policy Center for the New South, number 16, April.
    9. Mishra, Ashok K. & Park, Timothy A., 2005. "An Empirical Analysis of Internet Use by U.S. Farmers," Agricultural and Resource Economics Review, Cambridge University Press, vol. 34(2), pages 253-264, October.
    10. Chang, Ching-Fu & Wang, Ping & Liu, Jin-Tan, 2016. "Knowledge spillovers, human capital and productivity," Journal of Macroeconomics, Elsevier, vol. 47(PB), pages 214-232.
    11. Byoung-Min Kim & Richard Widdows & Tansel Yilmazer, 2005. "The determinants of consumers’ adoption of Internet banking," Conference Series ; [Proceedings], Federal Reserve Bank of Boston.

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