Sam Altman, CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. The initiative involved researchers who provided unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study engaged about 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom were earning under $30,000 annually. One-third of these individuals received $1,000 each month, while the remaining participants, serving as the control group, were given $50.
The findings revealed that those receiving the larger monthly payments experienced greater flexibility in seeking jobs that matched their desires. 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.”
In discussions about the study, one participant shared how the cash transfer allowed them to save and become more discerning in job selection, 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 reflected on their decision to accept a lower-paying entry-level position in their desired field, which ultimately led to them earning a six-figure salary within two years. They remarked, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”
The research indicated no significant differences in overall employment rates between those receiving the larger payments and the control group. Recipients primarily used the funds to cover essential living costs, such as food, housing, and transportation. Additionally, the payments aided in addressing health-related expenses, including braces and treatment for alcoholism. While the financial assistance initially alleviated stress, many of the health improvements diminished after two years.
Sam Altman has advocated for universal basic income, particularly as artificial intelligence continues to transform the labor market and displace certain jobs.
A correction has been made regarding the initial report, clarifying that the study was conducted by Sam Altman’s nonprofit OpenResearch, not OpenAI.