A reflective layer for reflecting light incident from a second substrate
side and transmitting through a second electrode made of ITO or the like
is formed above a first substrate, a switching element provided for each
pixel, and an insulating film covering the switching element, the
reflective layer being insulated from the switching element. A first
electrode having a work function similar to the second electrode and made
of a transparent conductive material such as ITO is formed more proximate
to a liquid crystal layer than is the reflective layer and is connected
to the switching element. The thickness of the first electrode is set to
100 .ANG. or less or in a range approximately from 750 .ANG. to 1250
.ANG.. Alternatively, the switching element maybe connected to the
reflective electrode, the first electrode and the reflective electrode
which are formed with an insulating film therebetween may be capacitively
coupled, and the first electrode may be driven by the reflective
electrode via the capacitor.