Sam Altman, CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. The initiative aimed to provide unconditional cash payments to individuals living below the poverty line for a period of three years.
The study included around 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of these participants received $1,000 each month, identified as the recipients, while the remaining individuals in the control group were given $50.
Findings from the study revealed that those receiving the larger payments had greater flexibility in pursuing job opportunities that aligned with their interests. The 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, “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 mentioned that the financial support allowed them to accept a lower-paying entry-level position in their desired field, which ultimately led to a six-figure salary within two years. They highlighted, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study, however, noted there was no significant difference in employment rates between the recipients and the control group. Participants mainly increased spending on essential needs, with food, housing, and transportation being the most significant expenditures. Additionally, payments enabled recipients to address health requirements, such as braces and alcoholism treatment. While initial financial support helped reduce stress, many of the health benefits observed diminished after two years.
Sam Altman has been a strong advocate for universal basic income, especially in light of the shifting labor landscape due to advancements in artificial intelligence.
Correction: An earlier version of this article incorrectly identified the organization conducting the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.