ABSTRACT
Racial discrimination has attracted the attention of a large number of distinguished economists, from Gunnar Myrdal to Kenneth Arrow, Gary Becker and Edmund Phelps, to name but a few. 1 While the experiences of the United States undoubtedly provided the stimulus for most of this work the current situation in South Africa is doing much to revive interest in these problems. The obvious differences in the two particular historical situations would seem to call, however, for a fresh approach which can nevertheless draw on the insights of the existing body of work on the problem.
