Sam Altman, CEO of OpenAI, funded the largest basic income study conducted 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 3,000 participants aged between 21 and 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of the participants received $1,000 per month, while the remaining individuals in the control group received $50.
The findings indicated that those receiving the larger monthly payments had greater freedom to pursue employment opportunities that aligned with their preferences. According to the authors of the study, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” They noted that recipients were more inclined to search for jobs but were also more selective in their choices.
In a commentary, 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,” emphasizing the ability to choose jobs that were a better fit instead of accepting any available position. Another recipient mentioned their experience of taking a lower-paying entry-level job in their desired field, which eventually led to a six-figure salary within two years. They attributed their ability to take that risk to the cash transfers, stating, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”
While the study did not find significant differences in employment rates between the recipients and the control group, it noted that recipients increased their spending primarily on essential needs such as food, housing, and transportation. Additionally, the payments enabled recipients to address specific health needs like braces and treatment for alcoholism. Although the payments initially alleviated stress, many of the health benefits diminished after two years.
Sam Altman has advocated for universal basic income, particularly in light of how artificial intelligence is transforming the labor market and potentially displacing certain jobs.
Correction: An earlier version of this article mistakenly identified the organization conducting the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.