| dc.description.abstract | In an era of rapid technological improvement, business is facing an increasingly competitive international market. Many corporations have adopted necessary adjustments on their organization, such as electronic business and technological upgrading. The main goal of this paper is to investigate the determinants of the changes in organizational change, as well as its impact on wage inequality between workers of different skills. As such, two databases were employed for empirical research, i.e., the Operations Strategies of the Manufactures Surveys and Manpower Utilization Survey in Taiwan. At the first stage, I estimate the probability of organizational change (OC) for Taiwan’s manufacture firms by the binary and ordered probit model. It is then being employed in the wage determination equation which aims to study the impact of OC on wage equation and wage differential. Empirical result shows that firm size, internet use, industry’s R&D, exporting competitor and electronic commerce are of significant positive influence on a firm’s probability of adopting the OC policy. However, as long as the firms suffer from the difficulties of technological upgrading or business computerization problem, they are less likely to adopt the OC policies. In addition, increases in the OC probability will lower the wages of the low skilled but not the wages of the high skilled. In sum, the adoption of the OC policies in Taiwan’s manufacture firms will raise the wage differential between workers of different skills. | en_US |