Sam Altman, CEO of OpenAI, has funded the largest basic income study conducted in the United States to date. His nonprofit organization, OpenResearch, partnered with researchers to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study involved approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of these participants received $1,000 per month, while the remaining participants, who made up the control group, received $50.
Results from the study indicated that those receiving the larger payments had more freedom to seek jobs that matched their preferences. The researchers noted that “cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” Recipients were not only more likely to search for jobs, but they also exhibited greater selectivity in their job choices.
One participant expressed that the cash transfers allowed them to save money, enabling them to be more discerning in their job search. “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,” they stated. Another recipient mentioned that they were able to accept a lower-paying entry-level position in a desired field, which ultimately led to a six-figure salary within two years. They stated, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study showed no significant difference in employment rates between those who received the larger payments and those in the control group. Recipients primarily used the additional funds for essential expenses, including food, housing, and transportation. The payments also supported health-related expenses, such as braces and treatment for alcoholism. While recipients initially experienced reduced stress from the payments, many of the health benefits diminished after two years.
Sam Altman has been an advocate for universal basic income, especially in light of the disruptions in the labor market caused by artificial intelligence.
Correction: An earlier version of this article incorrectly attributed the study’s conduct to OpenAI instead of Sam Altman’s nonprofit, OpenResearch.