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


  • Liu, Jin-Tan
  • Tsou, Meng-Wen
  • Hammitt, James K


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. Copyright 2001 by The London School of Economics and Political Science

Suggested Citation

  • Liu, Jin-Tan & Tsou, Meng-Wen & Hammitt, James K, 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:359-78

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    References listed on IDEAS

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    2. Green, Edward J & Porter, Robert H, 1984. "Noncooperative Collusion under Imperfect Price Information," Econometrica, Econometric Society, vol. 52(1), pages 87-100, January.
    3. Pindyck, Robert S, 1979. "The Cartelization of World Commodity Markets," American Economic Review, American Economic Association, vol. 69(2), pages 154-158, May.
    4. Abreu, Dilip, 1988. "On the Theory of Infinitely Repeated Games with Discounting," Econometrica, Econometric Society, vol. 56(2), pages 383-396, March.
    5. Abreu, Dilip & Pearce, David & Stacchetti, Ennio, 1986. "Optimal cartel equilibria with imperfect monitoring," Journal of Economic Theory, Elsevier, vol. 39(1), pages 251-269, June.
    6. Eswaran, Mukesh & Lewis, Tracy R, 1984. "Appropriability and the Extraction of a Common Property Resource," Economica, London School of Economics and Political Science, vol. 51(204), pages 393-400, November.
    7. Reinganum, Jennifer F & Stokey, Nancy L, 1985. "Oligopoly Extraction of a Common Property Natural Resource: The Importance of the Period of Commitment in Dynamic Games," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(1), pages 161-173, February.
    8. Porter, Robert H., 1983. "Optimal cartel trigger price strategies," Journal of Economic Theory, Elsevier, vol. 29(2), pages 313-338, April.
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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. Zhang, Feng & Park, Timothy A., 2004. "Computer Adoption Patterns Of U.S. Small Businesses," 2004 Annual meeting, August 1-4, Denver, CO 20250, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. repec:ocp:dbbook:9-789954-971727 is not listed on IDEAS
    5. Jin-Tan Liu & Meng-Wen Tsou & Ping Wang, 2010. "Workforce Composition And Firm Productivity: Evidence From Taiwan," Economic Inquiry, Western Economic Association International, vol. 48(4), pages 1032-1047, October.
    6. 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.
    7. 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(02), pages 253-264, October.
    8. 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.
    9. Görg, Holger & Strobl, Eric, 2002. "Relative Wages, Openness and Skill-Biased Technological Change," IZA Discussion Papers 596, Institute for the Study of Labor (IZA).
    10. Jin-Long Liu & Chia-Hui Huang & Chih-Hai Yang, 2013. "Technological Change, Job Risk, and Wage Premium: Evidence from Taiwan," The Developing Economies, Institute of Developing Economies, vol. 51(2), pages 186-202, June.
    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.
    12. Chih-Hai YANG & Chun-Hung A. LIN, 2008. "Developing Employment Effects Of Innovations: Microeconometric Evidence From Taiwan," The Developing Economies, Institute of Developing Economies, vol. 46(2), pages 109-134.

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