Sam Altman, the CEO of OpenAI, has financed 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 duration of three years.
Approximately 3,000 participants, aged between 21 and 40 from Texas and Illinois, were involved in the study. Each participant earned less than $30,000 annually. A third of them received $1,000 per month, while the remainder, who formed the control group, received only $50.
The findings indicated that those receiving the larger payments had greater flexibility in pursuing jobs that better matched their preferences and goals. 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.”
In a discussion about the study, one participant explained that due to the cash transfers and the ability to save, they could afford to be selective in their job search, stating, “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 how the cash payments allowed them to accept a lower-paying entry-level position in a desired field, which ultimately led to a six-figure salary within two years. They mentioned, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The research did not reveal significant differences in employment levels between the recipients of the larger payments and the control group. The recipients primarily increased their expenditures on essential needs such as food, housing, and transportation. Additionally, the payments facilitated access to healthcare services like braces and treatment for alcoholism. While the initial cash transfers reduced stress levels, many of the associated health benefits diminished after two years.
Sam Altman advocates for universal basic income, especially as advancements in artificial intelligence disrupt the job market and lead to job displacement.
Correction: An earlier version of this article incorrectly identified the organization conducting the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.