Sam Altman, CEO of OpenAI, has funded the largest basic income study conducted in the United States. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line over the course of three years.
The study included approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of the participants received $1,000 per month, while a control group was given only $50.
Results indicated that those receiving the larger payments had greater freedom in choosing jobs that better matched their interests. The authors of the study reported, “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 participant shared how the cash transfers allowed them to save money, enabling them to be more discerning in their job search. They expressed relief at not having to accept a subpar job due to financial urgency, stating, “I have the opportunity to hold out and try and find the right fit.”
Another participant noted that the financial support allowed them to accept a lower-paying entry-level position in their desired field, leading to a six-figure salary within two years. They explained, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study did not reveal significant differences in employment rates between recipients and the control group. Instead, it found that recipients primarily increased their spending on essential needs like food, housing, and transportation. The payments also facilitated health-related expenses, such as braces and addiction treatment. Although the financial support initially alleviated stress, many health benefits diminished after two years.
Sam Altman advocates for universal basic income as a response to the impact of artificial intelligence on the labor market, as it potentially displaces various job opportunities.
A correction has been issued regarding the study’s conducting group; it was Sam Altman’s nonprofit OpenResearch, not OpenAI, that carried out the research.