Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States through his nonprofit organization, OpenResearch. This initiative involved researchers distributing unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study engaged around 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 each month, while the remaining participants, serving as the control group, received only $50.
The findings revealed that those receiving the larger payments had greater freedom to pursue job opportunities that matched their interests. The authors of the study noted that “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 job hunting, but they were also more selective.”
One participant expressed that, thanks to the cash transfers and the ability to save, they were finally in a position to be discerning about job choices, stating they no longer had to settle for unsatisfactory employment just for immediate income. Another participant shared that the cash assistance allowed them to accept a lower-paying entry-level position in their desired field, ultimately leading to a six-figure salary within two years. They remarked that without the cash transfers, taking that pay cut would not have been feasible.
The study did not indicate a significant difference in employment levels between the recipients of higher payments and the control group. Instead, it found that recipients primarily used the funds to cover basic necessities, including food, housing, and transportation, while also addressing health-related expenses, such as braces and treatments for alcoholism. Although the payments initially alleviated stress, many of the associated health benefits diminished after two years.
Sam Altman has advocated for universal basic income as a response to the changes in the labor market caused by artificial intelligence, which has the potential to displace some jobs.
Correction: An earlier version of this article incorrectly identified the organization conducting the study as OpenAI; it was actually Sam Altman’s nonprofit, OpenResearch.