Sam Altman, CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. This initiative partnered with researchers to provide unconditional cash payments to individuals living below the poverty line for 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. A third of the participants received $1,000 per month, while the control group received only $50.
Findings from the study indicated that the individuals receiving the larger cash payments had increased flexibility in job searches, allowing them to pursue employment that suited their preferences.
“Financial assistance can enhance individuals’ ability to make employment choices that reflect their unique situations, aspirations, and values. Those receiving larger payments were more likely to be job hunting but were also more discerning,” the report noted.
In an interview, one participant expressed gratitude for the cash transfer, stating, “For once, I’m in a position to be picky,” and emphasized that they no longer felt compelled to accept poor job offers due to immediate financial needs. Another recipient shared that the financial support allowed them to accept a lower-paying entry-level job in their desired field, ultimately leading to a six-figure salary within two years. “Without the cash transfers, I would not have been able to take that pay cut,” they explained.
The study revealed no significant differences in employment levels between the group receiving larger payments and the control group. Recipients tended to increase spending primarily on essential needs, including food, housing, and transportation. Additionally, the payments enabled recipients to address health needs such as dental braces and treatment for alcoholism. While the financial assistance initially alleviated stress, many of the health benefits diminished after two years.
Altman has advocated for universal basic income as a means to address the labor market changes brought about by advancements in artificial intelligence that threaten to eliminate certain jobs.
A correction was issued regarding the original article, clarifying that the study was conducted by OpenResearch, not OpenAI.