Here is what I have so far:
Base: When $n=1$, we have $x^1 - y^1 = x - y$. Hence, P(1) is true.
Inductive hypothesis: We assume that P(k) is true: $x^k - y^k$ is divisible by $x - y$. That is: $x^k-y^k=(x - y)z$, for some integer $z$
Inductive step: We show that P(k+1) is true. That is:
$x^{k+1} - y^{k+1} = (x - y)z$
I don't quite know where to go from there.