Sam Altman, the CEO of OpenAI, has financed 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 for a duration of three years.
Approximately 3,000 participants from Texas and Illinois, aged between 21 and 40 and earning less than $30,000 annually, took part in the study. A third of these individuals received $1,000 per month, while the others, serving as a control group, received $50.
The findings revealed that those receiving the larger payments had greater flexibility in job searching, allowing them to pursue employment that better aligned with their personal goals and aspirations. According to the study’s authors, “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.”
In interviews, participants shared their experiences with the cash transfers. One noted that having the financial support enabled them to be selective in their job search, stating, “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 participant mentioned that the ability to accept a lower-paying entry-level job in their desired field eventually led to a six-figure salary in just two years, a move they could not have made without the cash transfers.
The study also observed that there was no significant difference in overall employment levels between those who received larger payments and those in the control group. Recipients primarily increased spending on essential needs, including food, housing, and transportation. The payments also assisted recipients in addressing health-related expenses, such as braces and treatment for alcoholism. While the initial cash support reduced stress levels, many of these health benefits diminished after two years.
Sam Altman has been an advocate for universal basic income, particularly as advancements in artificial intelligence alter the job market and lead to the displacement of certain positions.
A correction to this report clarifies that the study was conducted by Sam Altman’s nonprofit OpenResearch, not OpenAI.