ABSTRACT
Societies vary considerably in their degree of ethnic and racial antagonism. Such territories as Brazil, Mexico, and Hawaii are generally acknowledged to be relatively low on this dimension; while South Africa, Australia, and the United States are considered high. The central hypothesis is that ethnic antagonism germinates in a labor market split along ethnic lines. The concept "price of labor" refers to labor's total cost to the employer, including not only wages, but the cost of recruitment, transportation, room and board and the costs of labor unrest. Labor markets that are split by the entrance of a new group develop a dynamic which may in turn affect the price of labor. Two motives affect the price of labor, both related to the worker's intention of not remaining permanently in the labor force. First, they are more willing to put up with undesirable work conditions since these need not be endured forever. Second, temporary workers avoid involvement in lengthy labor disputes.
