Recently, female to male wage differentials have been declining in Taiwan. Two factors may explain the results. First is the change in industrial structure. Second is the increase in female education. The industrial structure in Taiwan has moved toward a level with higher technology- and capital-intensity with a larger share in the tertiary sector, in which females have a comparative advantage. The second factor results in a higher marginal product of female workers. This article employs the Manpower Utilization Survey data in Taiwan during the period of 1978-2003 in order to study the effects of industrial structure and sex discrimination on changes in the male-female wage differential. We test the following two hypotheses. First, the industrial structure change, resulting from economic growth, narrows the female-male wage differential. Second, the reduction in sex discrimination leads to a smaller female-male wage differential. Our estimations and tests support these two hypotheses. In particular, the factor of the average productivity differentials between females and males, as opposed to the factor of sex discrimination, is increasing over time in the determination of the narrowing female-male wage differential.