Sam Altman, the CEO of OpenAI, has funded the most extensive basic income research project 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 over a three-year period.
The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of them received $1,000 each month, while the remainder, serving as the control group, received only $50.
Results indicated that those receiving the larger payments had more freedom to seek employment that matched 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.”
One study participant remarked that the cash transfers allowed them to save money, enabling them to be more discerning in their job search. They expressed, “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 their experience of accepting a lower-paying entry-level job in a desired field, eventually leading to a six-figure salary within two years. They attributed their success to the cash transfers, stating, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
While the study reported no significant differences in employment rates between the two groups, it noted that recipients predominantly increased their spending on basic necessities like food, housing, and transportation. The payments also contributed to health-related expenses, such as braces and treatment for alcoholism. Although initial stress levels decreased with the payments, many health benefits diminished after two years.
Altman has been an advocate for universal basic income, especially in light of how artificial intelligence is transforming the labor market and displacing certain jobs.
The article has been corrected to clarify that the study was conducted by Sam Altman’s nonprofit OpenResearch, rather than OpenAI.