Sam Altman, the CEO of OpenAI, funded the largest basic income study in the United States to date. His nonprofit, 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 approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of these participants received $1,000 per month, while the remaining participants, serving as the control group, received only $50.
Findings revealed that those receiving the higher payments had greater freedom to seek jobs that aligned with their 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.”
A participant highlighted their improved situation due to the cash transfers, stating, “Because of 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 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 mentioned that they were able to accept a lower-paying entry-level job in a field of interest, which ultimately led 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.”
The study found no significant difference in employment levels between those receiving higher payments and the control group. Recipients primarily increased their spending on essential needs, including food, housing, and transportation. The cash help also facilitated payments for health necessities like orthodontic treatment and rehabilitation for alcoholism. While the cash transfers initially alleviated stress, many health benefits diminished after two years.
Sam Altman advocates for the concept of universal basic income, especially as advancements in AI impact the labor economy and displace certain jobs.
Correction: An earlier version of this article incorrectly identified the organization conducting the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.