, South Africa's Labour Market
Blue + white-collar workers
- Professional ppl (lawyers
NOTE : 'Labour' refers to
-
-
> owners of small businesses
· After 1994 ,
SA had to address racial inequalities ·
LRA -
labour relations act
·
BCEA-basic conditions of employment act
P
employment equity act
EEA
. -
New legislation was introduced which had a big SDA-skills developement act
impact on SA labour market
Purely Competitive labour market
this
In
sumptions
/ market
I
As
S
Numerous firms compete Individual firms + workers are
qualified workers with
w one another in
hiring specific wage takers'
,
be niether can control
type of labour identical skills supply that
the market rate
labour
wage
↳
what determines ratel
wage .
Demand +
Supply
Labour Market Equilibrium
Labour
&
Labour demand + Supply in a
demand t supply for a
purely comp .
market
single comp
. firm
Supply curve : MRC
Because market wage
is perfectly elastic ( rate is given to individ
ror,cust
Equilibrium
- firm
·
favilibrium ·
O a Demand curve = MRP
wage
cost
& The shaded area Oabc :
&
= firms total revenue
um's
total costs
C
nee
6 sum of MRPs
!
.
!
Equilibrium determined by
Equilibrium determined by
. =
= where ·
Wage cost (QcXWC)
demand MRC = MRP
+
supply
non-labour cost
·
- If firm
MRPs
employs 3 units of labour
(firms total cost -
cost
S
with of R24
,
R23 , R2 wage
.. TR = 24 + 23 + 22 = 69
Blue + white-collar workers
- Professional ppl (lawyers
NOTE : 'Labour' refers to
-
-
> owners of small businesses
· After 1994 ,
SA had to address racial inequalities ·
LRA -
labour relations act
·
BCEA-basic conditions of employment act
P
employment equity act
EEA
. -
New legislation was introduced which had a big SDA-skills developement act
impact on SA labour market
Purely Competitive labour market
this
In
sumptions
/ market
I
As
S
Numerous firms compete Individual firms + workers are
qualified workers with
w one another in
hiring specific wage takers'
,
be niether can control
type of labour identical skills supply that
the market rate
labour
wage
↳
what determines ratel
wage .
Demand +
Supply
Labour Market Equilibrium
Labour
&
Labour demand + Supply in a
demand t supply for a
purely comp .
market
single comp
. firm
Supply curve : MRC
Because market wage
is perfectly elastic ( rate is given to individ
ror,cust
Equilibrium
- firm
·
favilibrium ·
O a Demand curve = MRP
wage
cost
& The shaded area Oabc :
&
= firms total revenue
um's
total costs
C
nee
6 sum of MRPs
!
.
!
Equilibrium determined by
Equilibrium determined by
. =
= where ·
Wage cost (QcXWC)
demand MRC = MRP
+
supply
non-labour cost
·
- If firm
MRPs
employs 3 units of labour
(firms total cost -
cost
S
with of R24
,
R23 , R2 wage
.. TR = 24 + 23 + 22 = 69
