Sam Altman, the CEO of OpenAI, has financially supported the largest basic income experiment in the United States to date. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments for three years to individuals living below the poverty line.
The study involved around 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. Roughly a third of these individuals received $1,000 per month, while the remaining participants, serving as a control group, received $50.
Findings from the study indicated that those receiving the larger payments had greater freedom to seek employment that aligned with 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. Recipients were more likely to be searching for a job, but they were more selective.”
One participant shared, “Because of the cash transfer and being able to build up my savings, I’m in a position for once to be picky.” They added, “I don’t have to take a subpar job just because I need income right now. I have the opportunity to hold out and try and find the right fit.”
Another recipient stated that they were able to accept a lower-paying entry-level job in a field they desired, which later led 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 explained in an interview.
The study revealed no significant difference in employment rates between those who received higher payments and the control group. Recipients mainly used the funds for essential needs such as food, housing, and transportation. The payments also helped address health-related costs, including braces and treatment for alcoholism. While the initial cash transfers reduced stress, many of the associated health benefits appeared to diminish after a two-year period.
Sam Altman has advocated for universal basic income as a potential solution to the job displacement caused by advancements in AI in the labor market.
Correction: An earlier version mistakenly identified the organization conducting the study as OpenAI instead of Sam Altman’s nonprofit, OpenResearch.