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.
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 those involved received $1,000 per month in cash payments, while the remaining participants, acting as a control group, received $50.
Findings from the study indicated that those receiving the larger payments experienced greater flexibility in job searching. The 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 study 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,” adding that they no longer felt compelled to accept unsatisfactory jobs simply for immediate income. Another recipient reflected on their experience of accepting a lower-paid entry-level position in their desired field, which ultimately led 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 research revealed no significant employment differences between the cash recipients and the control group. Recipients primarily increased spending on essential needs such as food, housing, and transportation. The payments also enabled some to cover health-related expenses, including braces and alcoholism treatment. Although the payments initially alleviated stress, many health benefits diminished after two years.
Sam Altman advocates for universal basic income, especially as artificial intelligence reshapes the job market and displaces certain positions.
Note: An earlier version of this article incorrectly identified the organization conducting the study as OpenAI; it was actually Sam Altman’s nonprofit, OpenResearch.