Sam Altman, the CEO of OpenAI, has financed the largest basic income study ever conducted in the United States. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for three years.
Approximately 3,000 participants between the ages of 21 and 40 from Texas and Illinois were involved in the study. These individuals earned less than $30,000 annually. One-third of them received $1,000 each month, while the remaining participants, serving as the control group, were given $50.
The study revealed that those receiving the larger payments were better positioned to seek jobs they genuinely desired. The authors noted, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” They found that recipients were not only more likely to be actively searching for jobs but were also more discerning in their choices.
One participant shared, “Thanks to the cash transfer and my ability to save, I can finally be choosy.” They added, “I don’t have to accept a poor job just to get an income right now. I can afford to wait for the right opportunity.”
Another recipient mentioned that the financial support allowed them to take a lower-paying entry-level position in a desired field, which eventually led to a six-figure salary within two years. “Without the cash transfers, there’s no way I could have taken that pay cut,” they explained in an interview.
The research indicated no significant difference in employment rates between the larger payment recipients and the control group; however, those receiving the payments tended to spend more on essential needs. The most common expenditures included food, housing, and transportation, with the payments also covering health-related costs such as braces and treatment for alcoholism. Although the financial assistance initially alleviated stress, many of the health benefits diminished after two years.
Sam Altman advocates for the concept of universal basic income as a means to address the challenges posed by AI advancements that are reshaping the job market.
Note: An earlier version of this article incorrectly identified the organization conducting the study as OpenAI; it was actually OpenResearch.