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 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.
