Sam Altman, CEO of OpenAI, has financed the largest basic income study in the United States, collaborating through his nonprofit, OpenResearch. This study aimed at providing unconditional cash payments to individuals living below the poverty line over a span of three years.
The research involved around 3,000 participants aged 21 to 40 from Texas and Illinois, all earning under $30,000 annually. A third of these participants received monthly payments of $1,000, while the remaining participants were given $50, serving as a control group.
Findings revealed that those receiving the larger payments enjoyed greater flexibility in job searching, allowing them to pursue positions that better matched their 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.” They observed that while recipients were more likely to be job hunting, they were also more selective in their choices.
One participant reflected on their experience, stating, “Thanks to the cash transfer and being able to build up my savings, I’m in a position for once to be picky. I don’t have to take a subpar job just because I need income right now. I have the opportunity to hold out and find the right fit.” Another recipient shared how the financial assistance allowed them to accept a lower-paid entry-level job in a desired field, leading to a significant salary increase within two years. “If I didn’t have the cash transfers, there is no way I could have taken that pay cut,” they explained.
The study found little difference in employment rates between those who received the larger payments and the control group. Recipients primarily used the funds to cover basic necessities such as food, housing, and transportation. Additionally, the payments allowed recipients to address health needs, including medical treatments and addiction support. While the initial cash transfers alleviated stress, many of the associated health benefits dwindled after two years.
Altman has long advocated for universal basic income, especially as artificial intelligence reshapes the job market and displaces certain jobs.
A previous version of this article incorrectly identified the organization conducting the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.