Sam Altman, CEO of OpenAI, has financed the largest basic income study in the United States through his nonprofit, OpenResearch. The study aimed to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
Around 3,000 participants, aged between 21 and 40 from Texas and Illinois, who earned less than $30,000 annually, were involved. One-third of these participants received $1,000 monthly, while the remainder, serving as the control group, received only $50.
The findings indicated that those receiving the larger checks had greater flexibility in their job searches, enabling them to pursue positions that matched their preferences.
The authors of the study 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 in an interview that the cash transfer allowed them to save, stating, “For once, I’m in a position to be picky.” They expressed relief at not having to settle for an unsatisfactory job out of immediate financial need, allowing them to search for a better match.
Another recipient explained that this financial support enabled them to accept a lower-paying entry-level job in their desired field, which eventually led to a six-figure salary within two years. “Without the cash transfers, I would never have been able to take that pay cut,” they remarked.
However, the study found no significant difference in employment rates between those who received larger payments and those who did not. The primary impact of the payments was an increase in spending on essential needs, such as food, housing, and transportation. Additionally, recipients utilized the funds for health-related expenses, like braces and treatment for alcoholism. While the payments initially alleviated stress, many of the associated health benefits diminished after two years.
Sam Altman advocates for universal basic income as a strategy to address the challenges posed by artificial intelligence on the labor market.
An earlier version of this article incorrectly identified the organization conducting the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.