It is an object of the present invention to provide a technology for manufacturing a highly reliable display device at a low cost with high yield. In the present invention, a spacer is formed over a pixel electrode, thereby protecting the pixel electrode layer from a mask in formation of an electroluminescent layer. In addition, since a layer that includes an organic material that has water permeability is sealed in a display device with a sealing material and the sealing material and the layer that includes the organic material are not in contact, deterioration of a light-emitting element due to a contaminant such as water can be prevented. The sealing material is formed in a portion of a driver circuit region in the display device, and thus, the narrower frame margin of the display device can also be accomplished.