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I am new in magento can any one tell me why use this code???? and location of these file

$content = $this->getChildHtml('', true, true);

full code for show products in category page..

<?php
    $id = $this->getData('wrapperId');
   echo $class = $this->getData('wrapperClass');
     $content = $this->getChildHtml('', true, true);
?>
<?php if (!empty($content)): ?>
    <?php if ($id || $class): ?>
        <div <?php if($id):?>id="<?php echo $id ?>"<?php endif;?> <?php if($class):?>class="<?php echo $class ?>"<?php endif;?>>
            <?php echo $content ?>
        </div>
    <?php else: ?>
        <?php echo $content ?>
    <?php endif ?>
<?php endif ?>

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