Sam Altman, the CEO of OpenAI, has funded the largest basic income experiment conducted in the United States to date. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for a three-year period.
The study involved approximately 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 each month, while the rest of the participants, serving as a control group, received $50.
Findings from the study indicated that those receiving the higher payments had increased flexibility to seek jobs that aligned with their personal 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 how the cash transfers allowed them to save money, stating, “I’m in a position for once to be picky,” and emphasized their ability to avoid accepting poorly suited jobs just for immediate income. Another recipient explained how they could accept a lower-paying entry-level position in their desired field, ultimately leading 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 recalled.
Despite the positive adjustments in job seeking, the study noted no significant differences in employment levels between the larger-payment group and the control group. Recipients primarily used the funds to cover essential expenditures such as food, housing, and transportation. Additionally, the payments helped them address health-related needs, including braces and treatment for alcoholism. While the cash transfers initially lowered stress levels, many of the health benefits appeared to diminish after two years.
Sam Altman advocates for universal basic income in light of how artificial intelligence is reshaping the job market and displacing certain roles.
Correction: An earlier version of this article incorrectly identified the group conducting the study. It was Sam Altman’s nonprofit OpenResearch, not OpenAI.