The impact of advanced technology adoption on wage structures: Evidence from Taiwan manufacturing firms

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.