Basic Income Boost: Can Cash Payments Transform Job Searches?

Sam Altman, CEO of OpenAI, has financially backed the largest basic income study in the United States through his nonprofit organization, OpenResearch. This initiative provided unconditional cash payments to individuals living below the poverty line for three years.

The study involved around 3,000 participants aged 21 to 40 from Texas and Illinois, all earning under $30,000 annually. One-third of these individuals received $1,000 per month, while the rest, serving as a control group, received $50.

Results indicated that the recipients of the larger payments gained more flexibility in their job search. The authors of the study noted that cash payments enhanced individuals’ ability to make employment choices that were better suited to their personal situations, aspirations, and values. Recipients were more active in their job searches and tended to be more selective about the positions they pursued.

One participant expressed that the cash transfer allowed them to save money and be more discerning in their job search. They said, “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 participant shared how the financial support enabled them to accept a lower-paying entry-level job in their desired field, which eventually led them to a six-figure salary within two years. They noted, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”

The research found no significant differences in employment rates between those who received the larger payments and the control group. Recipients primarily used the funds to cover essential expenses such as food, housing, and transportation. The payments also helped with health-related costs, including braces and treatment for alcoholism. Although benefits such as reduced stress were observed initially, many health improvements diminished after two years.

Altman has advocated for universal basic income as a response to the changes in the job market due to advancements in artificial intelligence.

A correction was issued regarding the study’s conducting organization; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.

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