The CEO of OpenAI, Sam Altman, has funded the largest basic income study in the United States to date. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom had annual incomes below $30,000. One-third of the participants received $1,000 monthly, while the remaining participants, serving as the control group, were given $50.
Findings from the study indicated that those receiving the larger payments experienced greater flexibility in their job search, enabling them to pursue employment opportunities that aligned with their personal goals and values. The authors of the study noted that cash payments can enhance individuals’ ability to make informed employment decisions.
One participant remarked, “Thanks to the cash transfer and the ability to save, I can finally be selective,” explaining that they were no longer forced to take unsatisfactory jobs due to immediate financial need. Another recipient shared that they were able to accept a lower-paying entry-level role in a desired field, which eventually led to a six-figure salary within two years. They emphasized, “Without the cash transfers, I wouldn’t have been able to take that pay cut.”
Overall, the study reported no significant difference in employment levels between the groups, with recipients primarily using their additional funds for essential expenses. This included costs associated with food, housing, transportation, and healthcare needs, such as braces and alcoholism treatment. While the payments initially alleviated stress, many of the associated health benefits diminished after two years.
Sam Altman advocates for universal basic income, especially as artificial intelligence continues to transform the labor market and eliminate certain jobs.
Correction: An earlier version of this article incorrectly identified the organization administering the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.