Split labor market theory was proposed by sociologist Edna Bonacich in the early 1970s as an attempt to explain racial/ethnic tensions and labor market segmentation by race/ethnicity in terms of social structure and political power rather than individual-level prejudice. Bonacich argues that ethnic antagonism emerges from a split labor market, where two or more racially/ethnically distinct groups of workers vie for the same jobs, and where the total cost to the employer (including wages) of hiring workers from one group is significantly lower than the cost of hiring from the other group. Employers (or capitalists) prefer to hire cheaper workers and will do so absent active opposition from higher-priced workers, creating an antagonism between higher- and lower-priced groups. Differences in the price of labor are sociological and political in nature, not a matter of personal preference, so that, e.g., native, unionized workers, who enjoy full political rights will demand higher wages and be more likely to resist employer prerogatives than undocumented immigrant, non-union workers from poorer countries. According to Bonacich, likely outcomes of a split labor market include not only antagonism but, depending on the political power of higher-priced workers, a caste-like system where lower-priced workers are restricted to specific occupations, or total exclusion of the lower-priced group from the labor market. Dynamics of three labor groups Conflict develops between these three classes because each has a different interest. Business or employers (capitalists) aim to have a cheap and docile labor force in order to compete effectively with other businesses and maximize economic return. Business will dispense with and undercut the white working-class if they could, and have done so when they have the opportunity. Higher paid labor, otherwise called the "primary labor market", is threatened by introduction of cheaper labor into their market fearing that it will force them to leave the workplace or reduce their pay level. If the Higher Paid Labor is strong enough or possess the power resources, they can prevent being replaced or undercut by cheaper labor through exclusion movements or creating caste systems (exclusiveness or aristocracy of labor). Cheaper labor, also called the "secondary labor market", is used by the employer to undermine the position of more expensive labor through strikebreaking and undercutting. Cheaper laborers are usually unskilled, but can be trained. Economics of discrimination The split labor market theory attributes events to social structure rather than to individual preferences. It is a form