Sam Altman, the CEO of OpenAI, 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 period of three years.
The study involved around 3,000 participants aged between 21 and 40 from Texas and Illinois, all earning less than $30,000 annually. A third of these individuals received $1,000 per month, while the remainder, serving as a control group, received only $50.
Findings from the study indicated that those receiving the larger payments experienced greater flexibility in their job searches, allowing them to pursue roles that better aligned with their personal goals and circumstances.
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 shared, “Thanks to the cash transfer and being able to build up my savings, I’m in a position for once to be picky. I don’t have to take a mediocre job just because I need income right now. I can afford to wait for the right fit.”
Another recipient noted that they accepted a lower-paying entry-level position in a desired field, which ultimately led them to a six-figure salary within two years. They stated, “Without the cash transfers, there is no way I could have taken that pay cut.”
Although the study did not find significant differences in employment levels between those receiving larger payments and the control group, the recipients did increase their spending primarily on basic necessities such as food, housing, and transportation. The payments also contributed to covering health-related expenses, such as braces and treatment for alcoholism. While the initial cash transfers alleviated stress, many of the health benefits diminished after two years.
Sam Altman has consistently advocated for universal basic income, particularly in light of how artificial intelligence is transforming the labor market and potentially displacing certain jobs.
Note: An earlier version of this article incorrectly identified the organization conducting the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.