This paper is concerned with the oft-noted tendency for democratic workplaces to 'degenerate' over time. Prevailing theories of degeneration usually ascribe this tendency to a variety of economic incentives associated with the legal and capital structures of the firm. While acknowledging the tremendous power of these economic influences, this article demonstrates the importance of an additional set of ethnic and cultural factors that discussions of this problem are often inclined to overlook. This purpose is accomplished with the help of an analysis of the rapid degeneration of two taxi cooperatives that were formed in 1977 in the city of Los Angeles.
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