Sam Altman, the CEO of OpenAI, has funded the largest basic income study ever conducted in the United States. Through his nonprofit organization, OpenResearch, the study aimed to provide unconditional cash payments to individuals living below the poverty line for a period of three years.
The research involved around 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of these participants received $1,000 each month, known as the recipients, while the remaining participants, who served as the control group, received $50.
Findings from the study indicated that those receiving the larger payments had greater flexibility in pursuing job opportunities that aligned with their personal goals and circumstances. The study’s 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 participant in the study expressed, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky. 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 taking a lower-paying entry-level position in a desired field, which eventually led to a six-figure salary within two years, stating, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study noted that there were no significant differences in employment levels between recipients and the control group, as recipients primarily increased their spending on essential needs such as food, housing, and transportation. Additionally, the cash payments assisted in covering health-related expenses, including treatments for alcoholism and dental braces. While the financial support initially alleviated stress, some of the health benefits diminished over a two-year period.
Sam Altman has long advocated for universal basic income, particularly as advancements in artificial intelligence continue to impact the labor market and displace certain jobs.
Correction: An earlier version of this article incorrectly identified the organization that conducted the study. It was Sam Altman’s nonprofit OpenResearch, not OpenAI.