Sam Altman, the CEO of OpenAI, has financed the largest basic income study conducted 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 around 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. A third of the participants received $1,000 per month, while the remaining participants, serving as the control group, were provided with $50.
Findings from the study indicated that those receiving the larger payments experienced greater flexibility in seeking employment that aligned with their personal preferences. The authors of the study 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 in the study mentioned, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky,” explaining, “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 shared that they accepted a lower-paid entry-level job in a desired field, leading to a six-figure salary within two years. “If I didn’t have the cash transfers there is no way I could have taken that pay cut,” they stated.
The study did not reveal significant differences in employment levels between those who received larger payments and the control group. Recipients mainly increased their spending on essential needs, such as food, housing, and transportation. The payments also assisted recipients in addressing health-related expenses, including braces and treatment for alcoholism. While the initial cash influx alleviated stress, many health benefits diminished after two years.
Sam Altman has been an advocate for universal basic income, particularly as advancements in artificial intelligence continue to reshape the labor market and displace certain jobs.
Correction: An earlier version of this story inaccurately credited the group that conducted the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.