A version of this is used in india to reduce wages. When you divide people into two big groups and compensate one - you create unequal net wage - and if there i

A version of this is used in india to reduce wages. When you divide people into two big groups and compensate one - you create unequal net wage - and if there is not enough employment, one group hogs all the jobs while others have to significantly reduce their wages to compete. This is just capitalism in action.