Sam Altman, the CEO of OpenAI, has funded the largest basic income study 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 over a three-year period.
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The study involved approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of the participants received $1,000 per month, while the remaining individuals in the control group were given $50.
The findings indicated that those receiving the larger monthly payments had greater flexibility in their job searches, leading to better alignment with their personal goals and values. 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 expressed gratitude for the cash transfers, stating, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky,” and added, “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 how the payments enabled them to accept a lower-paying entry-level position in their desired field, ultimately leading to a six-figure salary two years later. “If I didn’t have the cash transfers, there is no way I could have taken that pay cut,” they stated in an interview.
The study found no significant differences in employment levels between recipients of the larger payments and the control group. However, recipients tended to increase spending on essential needs such as food, housing, and transportation. The payments also helped with health-related expenses, including braces and treatment for alcoholism. Although the initial cash transfers alleviated stress, many of the health benefits diminished after two years.
Sam Altman has been an advocate for universal basic income, especially in the context of artificial intelligence’s impact on the labor market and the displacement of jobs.
Note: An earlier version of this article incorrectly identified the organization that conducted the study; it was Sam Altman’s nonprofit OpenResearch and not OpenAI.