Sam Altman, CEO of OpenAI, has funded the largest basic income experiment in the United States through his nonprofit organization, OpenResearch. This initiative collaborated with researchers to provide unconditional cash payments to individuals living below the poverty threshold over the span of three years.
The study involved 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of the participants received $1,000 per month, while the control group was allotted $50.
The findings indicated that those receiving the larger cash payments gained more freedom to pursue desirable job opportunities. 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 in the job market, but they were also more selective.”
One participant expressed that the cash transfers allowed them to build savings, enabling them to be choosy about job options. They stated, “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 shared their experience of taking a lower-paying entry-level position in a desired field, which eventually led to a six-figure salary within two years, crediting the cash transfers for making that career move possible.
The study observed no significant difference in employment rates between recipients of the larger payments and the control group. Recipients primarily used the funds to meet basic needs including food, housing, and transportation. The payments also assisted with health-related expenses, such as braces and treatment for alcoholism. While initial stress levels decreased, many of the health benefits waned after two years.
Sam Altman has been an advocate for universal basic income as artificial intelligence transforms the labor market and displaces certain jobs.
Correction: An earlier version incorrectly identified the organization conducting the study as OpenAI; it was actually Sam Altman’s nonprofit, OpenResearch.