Sam Altman, CEO of OpenAI, has financed the largest basic income experiment in the United States through his nonprofit organization, OpenResearch. The initiative involved providing unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study included around 3,000 participants aged between 21 and 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of these participants received $1,000 monthly, termed the ‘recipients’, while the control group received just $50.
Findings revealed that those receiving the larger payments gained more freedom to seek jobs that matched their preferences. The authors noted, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” The study showed that recipients were more active in job searching but tended to be more selective in their choices.
A participant commented, “Because of the cash transfer and being able to build up my savings, I’m in a position for once to be picky,” emphasizing that they could avoid undesirable jobs due to financial security. Another recipient mentioned that they accepted a lower-paying entry-level position in their desired field, eventually achieving a six-figure salary, stating, “Without the cash transfers, there is no way I could have taken that pay cut.”
While the study indicated no significant employment differences between the larger payment recipients and the control group, it found that recipients primarily increased spending on basic needs such as food, housing, and transportation. Payments were also utilized to cover health expenses like braces and addiction treatment. Although the financial support initially alleviated stress, many health benefits diminished after two years.
Sam Altman has been a strong advocate for universal basic income, particularly as artificial intelligence transforms the job market and displaces certain jobs.
Note: An earlier version of this article incorrectly identified the organization conducting the study as OpenAI; it was actually Sam Altman’s nonprofit, OpenResearch.