Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit, OpenResearch. The study aimed to provide unconditional cash payments to individuals living below the poverty line over a three-year period.
Approximately 3,000 participants aged between 21 and 40 from Texas and Illinois were involved in the study, all earning less than $30,000 annually. One-third of the participants received $1,000 per month, while the remaining participants, serving as the control group, received $50.
The findings indicated that those receiving the larger cash payments experienced greater flexibility in their job searches. The researchers noted that the ability to receive cash payments empowered individuals to make employment choices that resonated with their personal circumstances and aspirations. Recipients were found to be more proactive in searching for jobs but were also more discerning in their choices.
One participant expressed that the cash transfer allowed them to build savings and feel justified in being selective about job opportunities, 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 recipient shared that they accepted a lower-paying entry-level position in their desired field, eventually achieving a six-figure salary within two years, attributing their ability to take the initial pay cut to the cash transfers.
Despite these individual experiences, the study revealed no significant differences in overall employment rates between those who received larger payments and the control group. The additional funds primarily increased spending on essential needs, including food, housing, and transportation. Recipients also utilized the payments for health-related expenses, but while the financial support initially alleviated stress, many of the health benefits diminished after two years.
Altman has advocated for the concept of universal basic income, particularly in light of how advancements in artificial intelligence could disrupt the job market and lead to job displacement.