In recent years, we have seen a severe shortage phenomenon in theprimary labor forces, which is resulted from increase of national income,Change of the social values, upgrading of education level, decrease of fertilityrate, and surging of tertiary service industry. The industrial structure isunder the pressure of transformation. During the process of transforminginto a capital-intensive and automative structure, it seems that we have noother choices but channel foreign workers into our labor market in order tostabilize economic growth and to avoid firms' going out. While importation of foreign workers relieves labor forces shortageproblem it also creates a couple of other economic and social problems, andpossibly does damages to the domestic worker's working conditions andopportunities. Furthermore, the speed of upgrading industry techology maybecome slower as our key industries continue to be dependent on them. Sothis study focuses on the investigation of the effects ushering in foreignworkers on domestic workers' economic welfare and wage structure. Data are collected by questionnair survey. Questionnaires are designed fordomestic workers, foreign workers, and firms. Both regression model andmean and Variance methods are used to analyze the data. The outcome ofanalysis shows that most firms are fairly satisfied with foreign workers'performance and are expecting to hire more in the near future. A largeportion of domestic workers hold friendly attitudes toward them. However,domestic workers feel greater pressure and are more hostile to foreignworkers, the more of the latter are hired in a particelar firm, or thesmaller of the firms scale is. In general, foreign worker's workig conditionand abilities are no better than those of domestic workers. Foreign workersalso show difficulties in life adjustment in Taiwan.