In 1916 Einstein introduced the first rules for a quantum theory of
electromagnetic radiation, and he applied them to a model of matter in thermal
equilibrium with radiation to derive Planck's black-body formula. Einstein's
treatment is extended here to time-dependent stochastic variables, which leads
to a master equation for the probability distribution that describes the
irreversible approach of Einstein's model towards thermal equilibrium, and
elucidates aspects of the foundation of statistical mechanics. An analytic
solution of this equation is obtained in the Fokker-Planck approximation which
is in excellent agreement with numerical results. At equilibrium, it is shown
that the probability distribution is proportional to the total number of
microstates for a given configuration, in accordance with Boltzmann's
fundamental postulate of equal a priori probabilities for these states. While
the counting of these configurations depends on particle statistics- Boltzmann,
Bose-Einstein, or Fermi-Dirac - the corresponding probability is determined
here by the dynamics which are embodied in the form of Einstein's quantum
transition probabilities for the emission and absorption of radiation. In a
special limit, it is shown that the photons in Einstein's model can act as a
thermal bath for the evolution of the atoms towards the canonical equilibrium
distribution of Gibbs. In this limit, the present model is mathematically
equivalent to an extended version of the Ehrenfests' ``dog-flea'' model, which
has been discussed recently by Ambegaokar and Clerk