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 period of three years.
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The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of these participants received $1,000 per month, while the others, serving as a control group, were given $50.
The findings revealed that those receiving the larger payments had greater freedom to seek out jobs that better suited their desires. The study’s authors 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 remarked, “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 their experience of being able to accept a lower-paying entry-level position in a field they were passionate about, ultimately leading to a six-figure salary within two years. They stated, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”
The study reported no significant difference in employment rates between the recipients and the control group. Those who received larger payments primarily increased their spending on basic necessities, including food, housing, and transportation. The payments also allowed recipients to address health-related expenses, such as braces and treatment for alcoholism. While the initial cash transfers reduced stress, many of the health benefits diminished over a two-year period.
Sam Altman has been a strong advocate for universal basic income, especially considering the impact of artificial intelligence on the labor market.
Correction: An earlier version of this article incorrectly identified the organization that conducted the study as OpenAI; it was, in fact, Sam Altman’s nonprofit, OpenResearch.