Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. This initiative aims to provide individuals living below the poverty line with unconditional cash payments over a three-year period.
The study involved approximately 3,000 participants, aged 21 to 40, from Texas and Illinois, all earning less than $30,000 annually. One-third of the participants received $1,000 monthly, classified as recipients, while the remaining participants, who formed the control group, were given $50 each month.
Results indicated that those receiving the larger payments felt they had greater freedom to pursue job opportunities that truly interested them. The study’s authors noted, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values,” emphasizing that recipients were not only more likely to seek employment but were also more selective in their choices.
One participant expressed that the cash transfer allowed them to build savings, enabling them to be more choosy in their job search. They stated, “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 accepting a lower-paying entry-level job in their desired field, which eventually led them 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 remarked.
The study revealed no significant difference in employment rates between the recipients and the control group, with the additional funds primarily spent on basic needs such as food, housing, and transportation. The payments also assisted recipients in addressing health-related expenses like braces and treatment for alcoholism. While the financial support initially alleviated stress, many of the associated health benefits diminished after two years.
Altman has been a vocal advocate for universal basic income, especially as artificial intelligence alters the labor landscape and displaces certain jobs.
Note: The original article incorrectly attributed the study to OpenAI; it was conducted by Altman’s nonprofit, OpenResearch.