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 Å or less or in a range approximately from 750 Å to 1250 Å. 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.