Sam Altman, the CEO of OpenAI, has funded the largest basic income experiment in the United States to date through his nonprofit organization, OpenResearch. This study aimed to provide unconditional cash payments to individuals living below the poverty line for a three-year duration.
A total of 3,000 participants aged between 21 and 40 from Texas and Illinois were included in the study, all of whom earned less than $30,000 per year. One-third of these individuals received $1,000 monthly, known as the recipient group, while the remaining participants, serving as the control group, were given only $50.
The findings revealed that those receiving the larger cash payments experienced greater flexibility in seeking jobs that matched their personal aspirations. 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 search of employment yet were also more selective in their choices.
One participant shared how the financial support allowed them to build savings and be more discriminating in their job search, stating, “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 cash transfers enabled them to take a lower-paid position in a desired field, which ultimately led them to a six-figure salary within two years. “If I didn’t have the cash transfers there is no way I could have taken that pay cut,” they explained.
Despite the increased selectivity in job searches among the recipients, the study did not find significant differences in overall employment levels when compared to the control group. The extra income primarily helped recipients with basic needs such as food, housing, and transportation, and also assisted in addressing health issues like braces and alcoholism. Although the cash payments alleviated stress initially, many of these health benefits diminished after two years.
Sam Altman advocates for universal basic income as a potential solution to economic challenges posed by the advancing role of AI in the labor market.
This innovative approach not only attempts to alleviate poverty but also empowers individuals to pursue career paths that genuinely resonate with their skills and passions—a promising step towards fostering a more sustainable and fulfilled workforce.
In summary, this study by OpenResearch showcases the potential benefits of basic income, highlighting how financial support can enable individuals to make more informed and fulfilling career choices. Such initiatives can be crucial as society adapts to the evolving job landscape influenced by technological advancements.