Altman’s Bold Bet: Can Basic Income Reshape Job Preferences?

Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. The study involved providing unconditional cash payments to individuals living below the poverty line for a period of three years.

Approximately 3,000 participants aged 21 to 40 from Texas and Illinois who earned less than $30,000 annually took part in the study. One-third of these participants received $1,000 each month, while the remaining participants, serving as a control group, were given $50.

The findings revealed that those who received the larger cash payments had greater flexibility in seeking employment that suited their preferences. According to the authors of the study, “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 in the study shared that the cash transfer allowed them to build savings and be more discerning about job opportunities. They stated, “I don’t have to take a crappy job just because I need income right now. I have the opportunity to hold out and try and find the right fit.”

Another recipient recounted how they were able to accept a lower-paying entry-level position in their desired field, which eventually led to a six-figure salary two years later, emphasizing that the cash transfers made it possible to take that initial pay cut.

The study did not show significant differences in employment levels between cash recipients and the control group, but it did highlight an increase in spending on basic needs such as food, housing, and transportation. Recipients also used the funds for health-related expenses, including braces and treatment for alcoholism. Although the cash payments initially alleviated stress, many of the health benefits diminished after two years.

Sam Altman has been a strong advocate for universal basic income, particularly as advancements in artificial intelligence reshape the job market and lead to job displacement.

A correction noted that the study was conducted by Sam Altman’s nonprofit OpenResearch, not OpenAI, as initially stated.

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