its not really a grinder. they spawn inside the thing and they drop 40 blocks down to their doom. u dont get any exp so i wouldnt call it a grinder... but anyways look up how to make one on youtube.
That's the exact same as a so called 'grinder', but without the water and lava taking health from them, involving the lava and water reduces the time you need to put in to making a large drop.
The mobs die either way and yeah, you do get xp from them unless they've been nerfed for some odd reason. They're allowed non-the-less, but they're pointless if you're planning to go afk for a short time to let them spawn.