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99-459: Auckland Park is a suburb of Johannesburg , South Africa . It lies on a gentle slope, and is in close proximity to the suburbs of Melville , Brixton , Westdene and Richmond . Auckland Park is one of the few suburbs close to the Johannesburg city centre that has remained largely unaffected by the recent migration of Johannesburg residents to the city's northern suburbs . Auckland Park

198-615: A large contraction in the economy. Many companies abandoned skyscrapers that had been built in the Central Business District (CBD) in the 1960s and 1970s, and left warehouses empty or little used. When the Group Areas Act was repealed, there was a mass migration of former township dwellers and illegal immigrants to buildings in the CBD and surrounding areas, which caused crime rates to increase dramatically in

297-523: A large number of high-rise apartment blocks. These areas were formerly extremely desirable; however, due to the increase in crime, the housing stock has greatly deteriorated as many wealthier residents have left for the northern suburbs. The existing buildings in the CBD area are insufficient to meet the current demands for housing in the area, and as a result, many under-utilised or abandoned office buildings have been taken over by squatters , or converted into residential housing units. Yeoville and Bellevue have

396-492: A mix of apartment buildings and single residential units on small lots. The region is located on a mountainous divide that runs from east to west. The most conspicuous geographic feature is Observatory Ridge , which is named for the large observatory located on it. The recreational spaces are no longer used, due to security problems. The CBD area lacks open spaces; although there are small neighbourhood parks in all suburbs, they are also not used due to mugging concerns. Both

495-608: A number of protected ridges with viewsites. There are several well-developed and up-market entertainment and shopping areas in the east such as the Eastgate Shopping Centre and the Greenstone shopping centre. Soweto and the south-western suburbs, located in Region 6 and Region 10 , border the city's mining belt in the north. The area is mostly composed of old "matchbox" houses, or four-room houses built by

594-413: A positive wage elasticity ). This positive relationship is increasing until point F, beyond which the income effect dominates the substitution effect and the individual starts to reduce the number of labour hours he supplies (point G) as wage increases; in other words, the wage elasticity is now negative. The direction of the slope may change more than once for some individuals, and the labour supply curve

693-554: A single employer and thus do not satisfy the perfect competition assumption of the neoclassical model above. The model of a monopsonistic labour market gives a lower quantity of employment and a lower equilibrium wage rate than does the competitive model. In many real-life situations, the assumption of perfect information is unrealistic. An employer does not necessarily know how hard workers are working or how productive they are. This provides an incentive for workers to shirk from providing their full effort, called moral hazard . Since it

792-570: A time constraint, with respect to the choices of labour time and leisure time: This is shown in the graph below, which illustrates the trade-off between allocating time to leisure activities and allocating it to income-generating activities. The linear constraint indicates that every additional hour of leisure undertaken requires the loss of an hour of labour and thus of the fixed amount of goods that that labour's income could purchase. Individuals must choose how much time to allocate to leisure activities and how much to working . This allocation decision

891-403: A variety of interesting effects. This is because the absolute value of the slope of the budget constraint is the wage rate. The point of optimisation (point A) reflects the equivalency between the wage rate and the marginal rate of substitution of leisure for income (the absolute value of the slope of the indifference curve). Because the marginal rate of substitution of leisure for income is also

990-514: Is 7th Road. A national serial drama, 7de Laan , shows the strip in its opening credits, mistakenly referring to the road as 7th Avenue. In Melville, lanes run east to west while roads lie north to south. Melville borders on the north to the Melville Koppies, a small protected reserve. The chief road that cuts through Melville's business area, Beyers Naude Drive . Currently, Melville has faced decline as several businesses relocate back into

1089-530: Is a derived demand; that is, hiring labour is not desired for its own sake but rather because it aids in producing output, which contributes to an employer's revenue and hence profits. The demand for an additional amount of labour depends on the Marginal Revenue Product (MRP) and the marginal cost (MC) of the worker. With a perfectly competitive goods market, the MRP is calculated by multiplying

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1188-761: Is also the location of the most prestigious secondary schools in Johannesburg. Houghton is also the former electoral district of Helen Suzman , a famous anti-apartheid Member of Parliament . The suburbs become more commercial to the north of Houghton. Rosebank is the centre of high-end retail and shopping for northern suburb residents. Many smaller companies who cannot afford to be located in Sandton also are located in Rosebank. The suburbs near Rosebank, including Parkhurst, Parktown North, Craighall Park and Greenside are collectively known as "The Parks". Parkhurst

1287-469: Is costly, and only those who excel in academia can succeed in becoming doctors. The port cleaner, however, requires relatively less training. The supply of doctors is therefore significantly less elastic than that of port cleaners. Demand is also inelastic as there is a high demand for doctors and medical care is a necessity, so the NHS will pay higher wage rates to attract the profession. Some labour markets have

1386-593: Is defined as the number of people of working age , who are either employed or actively looking for work (unemployed). The labour force participation rate ( LFPR ) is the number of people in the labour force divided by the size of the adult civilian noninstitutional population (or by the population of working age that is not institutionalized ), LFPR = LF/Population. The non-labour force includes those who are not looking for work, those who are institutionalized (such as in prisons or psychiatric wards), stay-at-home spouses, children not of working age, and those serving in

1485-558: Is different for different individuals. Other variables that affect the labour supply decision, and can be readily incorporated into the model, include taxation, welfare, work environment, and income as a signal of ability or social contribution. A firm's labour demand is based on its marginal physical product of labour (MPP L ). This is defined as the additional output (or physical product) that results from an increase of one unit of labour (or from an infinitesimal increase in labour). (See also Production theory basics .) Labour demand

1584-524: Is difficult for the employer to identify the hard-working and the shirking employees, there is no incentive to work hard and productivity falls overall, leading to the hiring of more workers and a lower unemployment rate. One solution that is used to avoid a moral hazard is stock options that grant employees the chance to benefit directly from a firm's success. However, this solution has attracted criticism as executives with large stock-option packages have been suspected of acting to over-inflate share values to

1683-449: Is due to numerous factors including labour supply and demand shifts as well as institutional changes in the labour market. On the shifts in labour supply and demand, factors include demand for skilled workers going up more than the supply of skilled workers and relative to unskilled workers as well as technological changes that increase productivity; all of these things cause wages to go up for skilled labour while unskilled worker wages stay

1782-417: Is education, whereby employers assume that high-ability workers will have higher levels of education. Employers can then compensate high-ability workers with higher wages. However, signalling does not always work, and it may appear to an external observer that education has raised the marginal product of labour, without this necessarily being true. One of the major research achievements of the 1990–2010 period

1881-520: Is home to a mix of nationalities and cultures, and the suburb is well known as the location of the South African Broadcasting Corporation headquarters. The suburb was laid out by John Landau in 1896, a New Zealander who named the area due to the similarities he experienced between the region and the city of Auckland , his native home. It was established in 1888 after the land was purchased from Petrus Lindeque and

1980-747: Is home to a number of academic institutions including the University of Johannesburg and private schools such as the Auckland Park Academy of Excellence , The Johannesburg Bible College (Auckland Park Campus), Auckland Park Nursery School and Auckland Park Preparatory School. The Deutsche Internationale Schule Johannesburg is in Auckland Park. This Gauteng location article is a stub . You can help Misplaced Pages by expanding it . Suburbs of Johannesburg The suburbs of Johannesburg are officially demarcated areas within

2079-427: Is informed by the indifference curve labelled IC 1 . The curve indicates the combinations of leisure and work that will give the individual a specific level of utility. The point where the highest indifference curve is just tangent to the constraint line (point A), illustrates the optimum for this supplier of labour services. If consumption is measured by the value of income obtained, this diagram can be used to show

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2178-440: Is known for its village atmosphere and pavement cafés and restaurants. Greenside is next to Parkhurst and has developed Parkhurst-style restaurants. Hyde Park , Sandton, and Morningside are all to the north of Rosebank, all of which are extremely wealthy and well policed. Sandton has become the new business area of Johannesburg, and features many corporate headquarters, as well as Nelson Mandela Square and Wanderers Stadium ,

2277-557: Is located in Radiopark , and two campuses of the sprawling University of Johannesburg . North of Auckland Park lies Melville , which has morphed into a Bohemian enclave of restaurants , cafés , and bookstores based chiefly around 7th Avenue . This occurred mainly following the South African Broadcasting Corporation moving its headquarters to Auckland Park. Melville's main entertainment strip

2376-457: Is located in this border area, to the east of Sandton . The north-western suburbs, located in Regions A and B, exist between the northern suburbs, Soweto , and the inner city. They are mostly low-rise although there are few skyscrapers . There are a few new developments in the recently incorporated city of Randburg , which is a chief commercial node for the area. The area is also connected to

2475-405: Is located near today's Soweto . The Central Business District (CBD) grew rapidly in the early 20th century as many formal European style buildings were constructed, such as the city's main post office . The Central Business District was the first part of the city to be built in a grid, which was designed around the major road known as Commissioner Street , which served as the central artery for

2574-424: Is on "how firms establish, maintain, and end employment relationships and on how firms provide incentives to employees," including models and empirical work on incentive systems and as constrained by economic efficiency and risk/incentive tradeoffs relating to personnel compensation. Inequality and discrimination in the workplace can have many effects on workers. In the context of labour economics, inequality

2673-476: Is publicly owned, and the city government is currently in the process of selling large tracts of it for development, which is hoped to provide jobs for the residents of the informal settlements. Rand Stadium , the oldest football stadium in the city, is located in the southern suburb of Rosettenville . Turffontein was the largest concentration camp in Johannesburg during the Second Boer War . The camp

2772-549: Is referred to as "Africa's richest square mile". The first major modern settlements in Johannesburg were loosely planned, as they grew up quickly in order to service the need for labour in the gold mines on the Witwatersrand . However, the population of Johannesburg increased rapidly and the city quickly established formal neighbourhoods, most of which were racially mixed as labourers lived together. The earliest formal settlement to house people of all races, Kliptown ,

2871-442: Is shown by the shift from point A to point B. The relative magnitude of the two effects depends on the circumstances. In some cases, such as the one shown, the substitution effect is greater than the income effect (in which case more time will be allocated to working), but in other cases, the income effect will be greater than the substitution effect (in which case less time is allocated to working). The intuition behind this latter case

2970-400: Is that the individual decides that the higher earnings on the previous amount of labour can be "spent" by purchasing more leisure. If the substitution effect is greater than the income effect, an individual's supply of labour services will increase as the wage rate rises, which is represented by a positive slope in the labour supply curve (as at point E in the adjacent diagram, which exhibits

3069-521: Is the Anglican Church of Christ the King. The area has since reintroduced the use of its original name. The southern suburbs, located in Regions 9 , 10 , and 11 , extend to the south of the inner city, and are somewhat isolated from the rest of Johannesburg. On a map, the southern suburbs appear to hang down from the border of Soweto and Johannesburg South . It is about 40 kilometres south of

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3168-430: Is unique to study because it is a special type of good that cannot be separated from the owner (i.e. the work cannot be separated from the person who does it). A labour market is also different from other markets in that workers are the suppliers and firms are the demanders. There are two sides to labour economics. Labour economics can generally be seen as the application of microeconomic or macroeconomic techniques to

3267-466: Is unknown, as many are illegal immigrants. Most higher-income residents and white people have moved to the northern suburbs and have been replaced by lower-income black people. The unemployment, education, and age profiles of the area are all unknown, due to the difficulty of obtaining reliable information about the area. There have been significant movements to revitalise the CBD , most of which have focused on

3366-722: Is used as a method to attain cost efficiency. Variables like employment level, unemployment level, labour force, and unfilled vacancies are called stock variables because they measure a quantity at a point in time. They can be contrasted with flow variables which measure a quantity over a duration of time. Changes in the labour force are due to flow variables such as natural population growth, net immigration, new entrants, and retirements . Changes in unemployment depend on inflows (non-employed people starting to look for jobs and employed people who lose their jobs that are looking for new ones) and outflows (people who find new employment and people who stop looking for employment). When looking at

3465-526: Is usually referring to the unequal distribution of earning between households. Inequality is commonly measured by economists using the Gini coefficient . This coefficient does not have a concrete meaning but is more used as a way to compare inequality across regions. The higher the Gini coefficient is calculated to be the larger inequality exists in a region. Over time, inequality has, on average, been increasing. This

3564-467: Is well connected to road networks, especially along the north-south axis formed by the M1 and N1 . Roads to the east and west are less well developed, as there are no freeways travelling in that direction. Towards the northern border of the city, the density of development decreases, leaving large areas of undeveloped land around Midrand. Grand Central Airport is also located in the area. The first suburb to

3663-496: The City Council has enabled the planting of more trees and the improving of parks and green spaces in the area. Hostels are another prominent physical feature of Soweto. Originally built to house male migrant workers, many have been improved as dwellings for couples and families. The N1 Western Bypass skirts the eastern boundary of Soweto. The suburb was not historically allowed to create employment centres within

3762-549: The City of Johannesburg Metropolitan Municipality , South Africa . As in other Commonwealth countries, the term suburb refers to a "neighbourhood", although in South Africa most (but not all) "suburbs" have legally recognised borders (see legal definition of township ) and often (but not always) separate postal codes . The municipal functions for the area, such as municipal policing and social services , are still managed by

3861-723: The University of the Witwatersrand and the University of Johannesburg are located in the inner city. One of South Africa's leading sporting venues, Ellis Park Stadium , is located in Doornfontein . It serves as primary home of Jo'burg's two professional rugby union teams, the Lions in the Southern Hemisphere Super Rugby competition and the Golden Lions in the domestic Currie Cup . It

3960-466: The city government . Johannesburg, like many other boom towns , grew rapidly and with little planning, and thus the city covers an extremely large area . The main differences between the city's suburbs tend to be socioeconomic: The north is often associated with wealth due to areas such as Houghton, which boasts large properties and contained the residence of former president Nelson Mandela, and Sandton which has become an alternative business district and

4059-483: The price of the end product or service by the Marginal Physical Product of the worker. If the MRP is greater than a firm's Marginal Cost, then the firm will employ the worker since doing so will increase profit . The firm only employs however up to the point where MRP=MC, and not beyond, in neoclassical economic theory. The MRP of the worker is affected by other inputs to production with which

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4158-458: The CBD also felt the demographic change as previously white and middle class suburbs like Yeoville became mostly black and dangerous within the space of two to three years. The city government has attempted to rectify this situation as of 2005 by installing CCTV cameras all over the city centre, and increasing police presence. Some businesses and residents have returned, although most businesses have built permanent and better facilities in

4257-500: The Central area of the city. Many businesses that had not closed their CBD offices left for more secured Northern suburbs, and in particular, Sandton . The amount of business and population of the northern suburbs increased exponentially, while the CBD was left empty and abandoned as a "no-go zone". The previous owners of buildings in the CBD abandoned them as their value decreased, and more illegal immigrants moved in. Many suburbs near

4356-406: The ability to create a higher derivative efficiency of labour, especially on a national and international level, compared to simpler forms of labour distribution, leading to a higher financial GDP growth and output. An efficient labour market is important for the private sector as it drives up derivative income through the reduction of relative costs of labour. This presupposes that division of labour

4455-432: The aggregate demand for labour. Likewise, the supply curves of all the individual workers (mentioned above) can be summed to obtain the aggregate supply of labour. These supply and demand curves can be analysed in the same way as any other industry demand and supply curves to determine equilibrium wage and employment levels. Wage differences exist, particularly in mixed and fully/partly flexible labour markets. For example,

4554-505: The area are the N3 eastern bypass freeway (which connects Sandton with Germiston ) and the R24 freeway (which connects Johannesburg to O. R. Tambo International Airport ). The eastern suburbs are some of the oldest areas of Johannesburg, there are large communities of Jewish and other European backgrounds, the majority of the population is English speaking. There are three golf courses as well as

4653-405: The area, so almost all of its residents are commuters to other parts of the city. There is efficient road access for many parts of the region along busy highways to the CBD and Roodepoort , but commuters are largely reliant on trains and taxis. The northern suburbs, located in Regions 2 , 3 , 4 , and 7 , include the most wealthy and developed parts of the city. Spreading to the north from

4752-592: The area. The original site offered a boating lake, located where The Country Club Johannesburg is today, as well as a horse racing track, where the University of Johannesburg (formerly RAU) is. The Country Club Johannesburg, was built by the Auckland Park Real Estate Company on the grounds of the old hotel, opening on 22 December 1906 by Mayor W. Kidger Tucker with the lake fed by the Braamfontein Spruit . Auckland Park

4851-444: The city. During this time period, the city invested in street cars , which mostly served to connect wealthier white suburbs with the CBD. Physical growth, although somewhat limited by transportation, continued quickly as immigration to South Africa, and Johannesburg in particular, increased dramatically. This problem was solved in the 1930s when the automobile was introduced in mass production to South Africa. Automobiles were, for

4950-410: The cost of hiring a non-minority worker, which causes less hiring of the minority. Another taste model is for employee discrimination, which does not cause a decline in the hiring of minorities, but instead causes a more segregated workforce because the prejudiced worker feels that they should be paid more to work next to the worker they are prejudiced against or that they are not paid an equal amount as

5049-477: The decision of how many hours to work, one must look at the income effect and substitution effect . The wage increase shown in the previous diagram can be decomposed into two separate effects. The pure income effect is shown as the movement from point A to point C in the next diagram. Consumption increases from Y A to Y C and – since the diagram assumes that leisure is a normal good – leisure time increases from X A to X C . (Employment time decreases by

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5148-447: The degree of capital mobility within and between countries. According to neoclassical theory, over the relevant range of outputs, the marginal physical product of labour is declining (law of diminishing returns). That is, as more and more units of labour are employed, their additional output begins to decline. Additionally, although the MRP is a good way of expressing an employer's demand, other factors such as social group formation can

5247-480: The demand, as well as the labour supply. This constantly restructures exactly what a labour market is, and leads way to cause problems for theories of inflation. The marginal revenue product of labour can be used as the demand for labour curve for this firm in the short run. In competitive markets , a firm faces a perfectly elastic supply of labour which corresponds with the wage rate and the marginal resource cost of labour (W = S L = MFC L ). In imperfect markets,

5346-523: The detriment of the long-run welfare of the firm. Another solution, foreshadowed by the rise of temporary workers in Japan and the firing of many of these workers in response to the financial crisis of 2008, is more flexible job- contracts and -terms that encourage employees to work less than full-time by partially compensating for the loss of hours, relying on workers to adapt their working time in response to job requirements and economic conditions instead of

5445-412: The diagram would have to be adjusted because MFC L would then be equal to the wage rate divided by marginal costs. Because optimum resource allocation requires that marginal factor costs equal marginal revenue product, this firm would demand L units of labour as shown in the diagram. The demand for labour of this firm can be summed with the demand for labour of all other firms in the economy to obtain

5544-400: The difference in wages that occurs because of differences in skills versus the returns to those skills. A way of modelling discrimination in the workplace when dealing with wages are Gary Becker 's taste models. Using taste models, employer discrimination can be thought of as the employer not hiring the minority worker because of their perceived cost of hiring that worker is higher than that of

5643-610: The election of the National Party in the 1948 elections, who began to formalise the system known as apartheid . Apartheid formally designated which suburbs each race could live in under the Group Areas Act . Consequently, the city was divided into white and black suburbs. The white suburbs were mostly wealthy and well-developed, and located in the nicest areas in the Johannesburg region. Black South Africans lived in poorly developed townships and suburbs out of view of

5742-411: The employer trying to determine how much work is needed to complete a given task and overestimating. Another aspect of uncertainty results from the firm's imperfect knowledge about worker ability. If a firm is unsure about a worker's ability, it pays a wage assuming that the worker's ability is the average of similar workers. This wage under compensates high-ability workers which may drive them away from

5841-402: The extreme south end of the city, there are extremely large informal settlements, such as Orange Farm , which suffer from widespread poverty and unemployment , which are compounded by their isolation from the rest of the city, which in turn makes it costly to extend much-needed infrastructure from the more integrated suburbs. A significant amount of underdeveloped and vacant agricultural land

5940-473: The government, that were built to provide cheap accommodation for black workers during apartheid . Soweto is an abbreviation, standing for "South Western Townships". Street after street in this area is lined with matchboxes; however, there are a few smaller areas where prosperous Sowetans have built houses that are more similar in stature with those in more affluent suburbs. Many people who still live in matchbox houses have improved and expanded their homes, and

6039-423: The hours available to them. Let w denote the hourly wage, k denote total hours available for labour and leisure, L denote the chosen number of working hours, π denote income from non-labour sources, and A denote leisure hours chosen. The individual's problem is to maximise utility U , which depends on total income available for spending on consumption and also depends on the time spent in leisure, subject to

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6138-423: The inner city every day, and it functions as a regional shopping node for visitors from the southern suburbs. All major arterial roads originate from the inner city and spread out into other parts of the city. Johannesburg's main railway station , bus terminal , and minibus taxi centre are all located in the inner city. The suburbs close to the CBD, in particular Joubert Park , Hillbrow , and Berea , have

6237-412: The inner city to the border with Midrand , the northern suburbs include both large housing developments and commercial centres. The northern suburbs benefited greatly from the deterioration of the CBD, as many people and businesses moved. The northern suburbs have developed along the M1 and N1 highways, which serve as their major arterial roads. The N1 Western Bypass connects the northern suburbs with

6336-679: The inner city. It is actually the most isolated, least integrated area of Johannesburg, with its east, west, and southern boundaries also forming Johannesburg proper's boundaries in the area. It is diagonally traversed by the N1 , with the N12 running along its northern border. The southern suburbs tend to be either solely industrial or solely residential, with most residents in the residential areas being long-term residents in well-established communities. The majority of houses in these formal settlements are included in one of Johannesburg's lowest income brackets. At

6435-501: The interaction of workers and employers. Labour economics looks at the suppliers of labour services (workers) and the demanders of labour services (employers), and attempts to understand the resulting pattern of wages, employment, and income. These patterns exist because each individual in the market is presumed to make rational choices based on the information that they know regarding wage, desire to provide labour, and desire for leisure. Labour markets are normally geographically bounded, but

6534-418: The labour market as well as at the same time attracting low-ability workers. Such a phenomenon, called adverse selection , can sometimes lead to market collapse. One way to combat adverse selection, firms will try to use signalling , pioneered by Michael Spence , whereby employers could use various characteristics of applicants differentiate between high-ability or low-ability workers. One common signal used

6633-436: The labour market may act as a non-clearing market . While according to neoclassical theory most markets quickly attain a point of equilibrium without excess supply or demand, this may not be true of the labour market: it may have a persistent level of unemployment. Contrasting the labour market to other markets also reveals persistent compensating differentials among similar workers. Models that assume perfect competition in

6732-427: The labour market, as discussed below, conclude that workers earn their marginal product of labour. Households are suppliers of labour. In microeconomic theory, people are assumed to be rational and seeking to maximize their utility function . In the labour market model, their utility function expresses trade-offs in preference between leisure time and income from time used for labour. However, they are constrained by

6831-402: The labour market. Many sociologists, political economists, and heterodox economists claim that labour economics tends to lose sight of the complexity of individual employment decisions. These decisions, particularly on the supply side, are often loaded with considerable emotional baggage and a purely numerical analysis can miss important dimensions of the process, such as social benefits of

6930-474: The labour market. Microeconomic techniques study the role of individuals and individual firms in the labour market. Macroeconomic techniques look at the interrelations between the labour market, the goods market, the money market, and the foreign trade market. It looks at how these interactions influence macro variables such as employment levels, participation rates, aggregate income and gross domestic product . The labour market in macroeconomic theory shows that

7029-452: The military. The unemployment level is defined as the labour force minus the number of people currently employed. The unemployment rate is defined as the level of unemployment divided by the labour force. The employment rate is defined as the number of people currently employed divided by the adult population (or by the population of working age). In these statistics , self-employed people are counted as employed. The labour market has

7128-590: The more affluent northern residential areas to the inner city. However, links are poor towards high economic and commercial areas in the north, such as Randburg and Sandton. This gives rise to increasing numbers of secondary roads, creating congestion and putting pressure on residential areas and infrastructure. Towards the extreme north-west of the city, there are well-developed farms , as well as smaller formal and informal residential areas. There are also large manufacturing and industrial nodes. The informal settlements in this area are growing rapidly, with 76 per cent of

7227-412: The most part, confined to the wealthy, and permitted them to move to the north of the city and commute into the centre. The South African economy did extremely well at the end of World War II and many new immigrants came to South Africa from Europe. Most poor suburbs were mixed, with poor blacks and whites living together, although the wealthy suburbs were usually reserved for whites. This changed with

7326-491: The most prestigious cricket ground in South Africa. The skyline of Sandton has grown rapidly and there are many projects under development in the area. Sandton is also the location of the JSE Securities Exchange , Africa's largest stock exchange , which relocated from the CBD in 2000. The quality of life deteriorates on the outer fringes of the northern suburbs. One of the poorest townships , Alexandra ,

7425-450: The net of exports minus imports (X−M), since AE = C + I + G + (X−M). Neoclassical economists view the labour market as similar to other markets in that the forces of supply and demand jointly determine the price (in this case the wage rate) and quantity (in this case the number of people employed). However, the labour market differs from other markets (like the markets for goods or the financial market) in several ways. In particular,

7524-457: The newly renovated Newtown area in the city centre. West of Melville is Westdene and Sophiatown , once one of the most vibrant black suburbs in the city. Considered a criminal and political hotbed, the entire suburb was razed to the ground in the 1950s. A white suburb of Triomf , meaning "triumph" in Afrikaans , was constructed in its place. The only remaining original Sophiatown building

7623-458: The north of the inner city is Parktown , which is located on a hill overlooking the inner city and Hillbrow. It has many wealthy residents and Edwardian -style mansions , as well as the Education and Medical campuses of the University of the Witwatersrand . The large concrete Charlotte Maxeke Johannesburg Academic Hospital dominates the skyline of Parktown. There are numerous office parks in

7722-517: The north-western suburbs. The residential areas in the northern suburbs are mainly formal, with no significant areas of informal housing, or housing that lacks a permanent structure. Although this is an established area, there is a trend of land use change from residential to commercial, especially along main arterial roads and around established nodes. The area is also becoming more dense, as large residential properties are subdivided , or redeveloped, as townhouse and cluster house complexes. The area

7821-436: The northern suburbs, so a large-scale return is unlikely. The city has grown so quickly to the north that the border between Johannesburg, Midrand , and Centurion is mostly an arbitrary political border, as the two cities have grown together so there is no space between them. The city of Johannesburg is divided into seven regions for administrative purposes, lettered from A to G. The previous system of eleven numbered regions

7920-418: The overall macroeconomy, several types of unemployment have been identified, which can be separated into two categories of natural and unnatural unemployment. Natural Unemployment Unnatural Unemployment Aggregate expenditure (AE) can be increased, according to Keynes, by increasing consumption spending (C), increasing investment spending (I), increasing government spending (G), or increasing

8019-461: The population of Diepsloot living in informal housing. The industrial areas along Malibongwe Drive in the south-west form part of the Kya Sand area. Fourways , in the south-east, is the major retail, office and entertainment area. The first suburb to be grouped in the north-west is Auckland Park . Auckland Park is home to the headquarters of the South African Broadcasting Corporation , which

8118-409: The productivity of the worker. Many regions and countries have enacted government policies to combat discrimination, including discrimination in the workplace. Discrimination can be modelled and measured in numerous ways. The Oaxaca decomposition is a common method used to calculate the amount of discrimination that exists when wages differ between groups of people. This decomposition aims to calculate

8217-448: The ratio of the marginal utility of leisure (MU ) to the marginal utility of income (MU ), one can conclude: where Y is total income and the right side is the wage rate. If the wage rate increases, this individual's constraint line pivots up from X,Y 1 to X,Y 2 . He/she can now purchase more goods and services. His/her utility will increase from point A on IC 1 to point B on IC 2 . To understand what effect this might have on

8316-458: The reduction of crime , especially street crime in the central area, and the redevelopment of Newtown as a cultural hub for the city. Centred on the CBD, the region includes the suburbs of Yeoville , Bellevue , Troyeville , Jeppestown , and Berea to the east. To the west it spreads to Pageview and Fordsburg . There are small industrial areas to the south, such as City West-Denver and Benrose . Around 800,000 commuters pass through

8415-481: The rest of the city by the N1 Western Bypass . Roodepoort is another major formerly independent municipality, recently incorporated into Johannesburg. Roodepoort's previously predominantly white population is changing as its proximity to Soweto has made it attractive to middle-class black people who want to move to nicer houses while maintaining ties to their old communities. There is ample access from

8514-417: The rise of the internet has brought about a 'planetary labour market' in some sectors. Labour is a measure of the work done by human beings. It is conventionally contrasted with other factors of production , such as land and capital . Some theories focus on human capital , or entrepreneurship , (which refers to the skills that workers possess and not necessarily the actual work that they produce). Labour

8613-456: The same amount as leisure increases.) But that is only part of the picture. As the wage rate rises, the worker will substitute away from leisure and into the provision of labour—that is, will work more hours to take advantage of the higher wage rate, or in other words substitute away from leisure because of its higher opportunity cost . This substitution effect is represented by the shift from point C to point B. The net impact of these two effects

8712-477: The same or decline. As for the institutional changes, a decrease in union power and a declining real minimum wage, which both reduce unskilled workers wages, and tax cuts for the wealthy all increase the inequality gap between groups of earners. As for discrimination, it is the difference in pay that can be attributed to the demographic differences between people, such as gender, race, ethnicity, religion, sexual orientation, etc, even though these factors do not affect

8811-457: The suburb as well. Just to the west of Parktown is Westcliff and Parkwood, which is one of the wealthiest areas in Johannesburg, as it is located on the side of a very tall hill and overlooks the inner city as well as the northern suburbs. Other wealthy residential suburbs, Saxonwold , Houghton and Oaklands continue to the north of Westcliff. Nelson Mandela had a house in Houghton, and it

8910-452: The supply of labour exceeds demand, which has been proven by salary growth that lags productivity growth. When labour supply exceeds demand, salary faces downward pressure due to an employer's ability to pick from a labour pool that exceeds the jobs pool. However, if the demand for labour is larger than the supply, salary increases, as employee have more bargaining power while employers have to compete for scarce labour. The Labour force (LF)

9009-451: The wages of a doctor and a port cleaner, both employed by the NHS , differ greatly. There are various factors concerning this phenomenon. This includes the MRP of the worker. A doctor's MRP is far greater than that of the port cleaner. In addition, the barriers to becoming a doctor are far greater than that of becoming a port cleaner. To become a doctor takes a lot of education and training which

9108-410: The white suburbs. Many large freeways were built to link Johannesburg with the rest of South Africa, although this permitted the further outward expansion of the city along the N1 , N3 , and M2 roadways. Public transport construction was completely abandoned, except for a minor bus system. This system continued until the 1980s, when international sanctions and a poor security situation led to

9207-507: The worker can work (e.g. machinery), often aggregated under the term " capital ". It is typical in economic models for greater availability of capital for a firm to increase the MRP of the worker, all else equal. Education and training are counted as " human capital ". Since the amount of physical capital affects MRP, and since financial capital flows can affect the amount of physical capital available, MRP and thus wages can be affected by financial capital flows within and between countries, and

9306-473: The worker they are prejudiced against. One more taste model involves customer discrimination, whereby the employers themselves are not prejudiced but believe that their customers might be, so therefore the employer is less likely to hire the minority worker if they are going to interact with customers that are prejudiced. There are many other taste models other than these that Gary Becker has made to explain discrimination that causes differences in hiring in wages in

9405-539: Was also a venue for the 2010 FIFA World Cup . Johannesburg Stadium , a training ground for both the Golden Lions and Orlando Pirates , is adjacent. The eastern suburbs of Johannesburg are located in the city's 7th and 9th regions. The area is also functionally integrated with East Rand border towns outside of the official boundary of Johannesburg, such as Bedfordview and Edenvale (both part of Ekurhuleni Metropolitan Municipality ). The major freeways in

9504-652: Was located where the Turffontein Racecourse is now, and held about 5,000 people. The 700 who died of that group are buried at the Suideroord Concentration Camp Cemetery which was on a farm called Klipriviersberg and which is now the suburb of Winchester Hills. The racecourse hosts the Summer Cup one of three major races in South Africa. Labour (economics) Labour markets or job markets function through

9603-569: Was part of an old Witwatersrand farm called Braamfontein . Landau would open the Auckland Park Hotel. Street names in the area are named after places along the river Thames : Richmond , Twickenham , Ditton and Kingston , among others. Some of the city of Johannesburg's first residents settled in Auckland Park, as the region was still considered to be "in the country" relative to the city centre. Victorian gentry who had made South Africa their home would have had weekend homes in

9702-412: Was reorganised in 2006. The inner city of Johannesburg is located within the city's Region F. The inner city is an extremely diverse region, with areas ranging from severely degraded residential areas such as Bertrams , to the somewhat stable commercial area of Braamfontein . The estimated population of the region is 200,000, but the number of people living in the inner city on an informal basis

9801-570: Was the development of a framework with dynamic search , matching, and bargaining. At the micro level, one sub-discipline eliciting increased attention in recent decades is analysis of internal labour markets , that is, within firms (or other organisations), studied in personnel economics from the perspective of personnel management . By contrast, external labour markets "imply that workers move somewhat fluidly between firms and wages are determined by some aggregate process where firms do not have significant discretion over wage setting." The focus

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