Sam Altman, the CEO of OpenAI, has funded the largest basic income study conducted in the United States. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study included around 3,000 participants aged 21 to 40 from Texas and Illinois, each earning less than $30,000 annually. A third of the participants received monthly payments of $1,000, while the remaining participants, serving as a control group, received $50.
Results from the study indicated that those receiving the larger payments had greater flexibility in seeking employment that aligned with their interests and 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 job searching, but they were more selective.”
One participant shared in an interview, “Thanks to the [cash transfer], I’ve managed to save up, allowing me to be more selective,” emphasizing their ability to avoid taking a job that did not suit their needs. Another recipient explained that the cash transfers enabled them to accept a lower-paying entry-level position in their desired field, leading to a six-figure salary within two years. They stated, “Without those cash transfers, I wouldn’t have been able to take that pay cut.”
The study reported no significant differences in employment rates between those receiving the larger payments and those in the control group. The recipients primarily increased their spending on essential needs, including food, housing, and transportation. Additionally, the payments assisted in covering health-related expenses such as braces and treatment for alcoholism. While the initial payments alleviated some stress, many of the health benefits appeared to diminish after two years.
Sam Altman has advocated for universal basic income, particularly as artificial intelligence alters the labor market and displaces certain job opportunities.