Sam Altman, the CEO of OpenAI, has funded the largest basic income study conducted in the United States to date through his nonprofit organization, OpenResearch. The initiative aimed to provide unconditional cash payments to individuals living below the poverty line over a three-year period.
The study involved about 3,000 participants aged 21 to 40 from Texas and Illinois, all with annual incomes below $30,000. Of these participants, one-third received $1,000 per month, while the remaining participants, serving as a control group, were given just $50.
Findings revealed that those receiving the larger payments had greater flexibility in their job searches. The researchers noted, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values. Recipients were more likely to be searching for a job, but they were more selective.”
One participant expressed how the cash transfers allowed them to save money, stating, “I’m in a position for once to be picky… I don’t have to take a lousy job just because I need income right now. I have the opportunity to hold out and try and find the right fit.”
Another recipient shared their experience of taking a lower-paying job in their desired field, which eventually led to a six-figure salary after two years. They remarked, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study found no significant difference in overall employment levels between recipients of the larger payments and the control group. Recipients primarily increased their spending on basic necessities, with food, housing, and transportation being the main expenditures. The payments also helped cover health-related expenses, such as braces and addiction treatment. However, while the cash transfers initially reduced stress, many of the health benefits diminished after two years.
Sam Altman advocates for universal basic income as a potential solution to the economic shifts caused by artificial intelligence, which may lead to job displacement.
Note: A previous version of this article incorrectly attributed the study’s conductors to OpenAI instead of OpenResearch.