Sam Altman, the CEO of OpenAI, has funded what is considered the largest basic income study in the United States. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for a period of three years.
The study involved approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of the participants received $1,000 each month, while the remaining participants, serving as the control group, received only $50.
Findings indicated that those receiving the higher payments enjoyed greater flexibility in seeking jobs that matched their preferences. According to the authors of the study, “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 their experience, 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 noted that they were able to accept a lower-paying entry-level job in their desired field, eventually achieving 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,” they explained.
The research revealed no significant difference in employment rates between the recipients of the larger payments and the control group. Recipients primarily increased their spending on basic necessities such as food, housing, and transportation. The payments also assisted participants in covering health-related expenses, including treatments for alcoholism and orthodontic needs. Although the payments initially alleviated stress, many of the health benefits diminished after a period of two years.
Sam Altman has been an advocate for universal basic income, particularly as artificial intelligence continues to transform the labor market 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.