Sam Altman, the CEO of OpenAI, has funded the largest basic income research initiative 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 three-year period.
The study involved around 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. One group received $1,000 per month, while the control group received $50.
Findings indicated that those receiving larger payments had greater freedom to pursue employment opportunities that aligned with their preferences. The study’s authors 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 participant shared how the cash transfers enabled them to save and be more discerning in their job search, saying, “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 explained that the financial support allowed them to accept a lower-paying entry-level role in their desired field, eventually leading to a high-paying position two years later, stating, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study revealed no significant difference in the employment levels between those who received the larger payments and those in the control group. Recipients primarily used the funds for essential expenses, including food, housing, and transportation, and addressed health-related costs such as braces and addiction treatment. Although the payments initially alleviated stress, many of the health benefits diminished over time.
Altman has advocated for universal basic income as a potential solution as artificial intelligence transforms the job market and displaces certain jobs.