Sam Altman, the CEO of OpenAI, has funded the most extensive basic income study in the United States to date, through his nonprofit organization, OpenResearch. This initiative aims to provide unconditional cash payments to individuals living below the poverty line over a span of three years.
The study involved around 3,000 participants aged between 21 and 40 from Texas and Illinois, all earning less than $30,000 annually. Of these participants, one-third received $1,000 monthly, while the remaining participants, serving as a control group, received $50.
Findings from the study indicated that those receiving larger payments had greater freedom to seek employment that suited their interests and needs. The researchers noted, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” Recipients displayed increased job-seeking activity, often becoming more selective in their choices.
One participant shared how the cash transfers allowed them to accumulate savings, stating, “For once, I’m able to be picky.” They emphasized that the financial support gave them the leverage to avoid unsatisfying jobs and pursue a better fit. Another recipient mentioned that the cash assistance enabled them to accept a lower-paying position in a desired field, eventually leading to a six-figure salary within two years. They highlighted that without the cash transfers, taking such a pay cut would have been impossible.
While the study reported no significant differences in overall employment levels between the two groups, it revealed that recipients primarily used the additional funds for essential needs such as food, housing, and transportation. The assistance also played a role in addressing health expenses, helping individuals manage medical needs and personal challenges. However, the positive effects on stress levels and health benefits appeared to diminish after two years.
Sam Altman advocates for universal basic income, particularly in the context of job displacement due to advancements in artificial intelligence, highlighting the need for adaptive measures in the labor economy.
This study shines a light on the potential benefits of cash assistance programs in empowering individuals to make more deliberate career choices, illustrating how financial support can provide much-needed flexibility in a changing job landscape. As the conversation around universal basic income gains momentum, initiatives like these could serve as a model for more comprehensive future strategies to support those most affected by economic shifts.