Sam Altman, the CEO of OpenAI, has financed the largest basic income study 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 for a three-year period.
The study involved 3,000 participants aged between 21 and 40 from Texas and Illinois, with annual incomes of less than $30,000. One-third of the participants received $1,000 monthly, while the control group was given $50.
Findings revealed that those receiving larger monthly payments had more freedom to pursue jobs that matched their preferences. The study’s authors highlighted that cash payments can enhance individuals’ ability to make employment choices that reflect their personal circumstances, ambitions, and values. Recipients were more inclined to seek employment but were also more selective in their job searches.
One participant expressed that the cash transfers allowed them to save and become more discerning in their job choices, stating, “I don’t have to take a crappy job just because I need income right now.” Another recipient noted that they could accept a lower-paying entry-level job in their desired field, ultimately leading to a six-figure salary within two years. They added, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study indicated no significant employment difference between those receiving larger payments and the control group. Recipients primarily increased spending on essential needs, with food, housing, and transportation being the main expenses. The financial assistance also allowed recipients to address health issues such as braces and addiction treatment. While the payments initially alleviated stress, many health benefits diminished after two years.
Sam Altman advocates for universal basic income as a response to the changes in the labor market prompted by artificial intelligence, which has the potential to displace certain jobs.
A correction has been made to clarify that the study was conducted by Altman’s nonprofit, OpenResearch, instead of OpenAI.