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You can clearly see who benefits from that policy... the company.
In the short run. In the long run this will just increase their turnover rate until an equilibrium is reached.
That's assuming everyone has knowledge of their true worth. You can certainly find out, but some people only find out after years and others never do.

I've worked in companies that paid 1/3 less than others (management consulting), many people knew they were paid less, but few people left. Jobs can often be sticky.