Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. The initiative involved providing unconditional cash payments to individuals living below the poverty line for a period of three years.
Approximately 3,000 participants aged 21 to 40 from Texas and Illinois were included in the study, all earning less than $30,000 annually. One group received $1,000 per month, while a control group was given only $50.
The findings indicated that those receiving the larger payments had greater freedom to pursue jobs that better suited their preferences. The authors of the study 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 expressed, “Thanks to the cash transfer and being able to grow my savings, I’m finally in a position to be picky. I don’t have to settle for a poor job just for immediate income. I can take my time to find the right fit.” Another recipient shared their experience of taking a lower-paid entry-level job in a desired field, which eventually led them to a six-figure salary within two years. They stated, “Without the cash transfers, I wouldn’t have been able to accept that pay cut.”
The study revealed no significant differences in employment rates between those receiving the larger payments and the control group, with recipients mostly increasing their spending on essential needs such as food, housing, and transportation. The cash payments also assisted recipients in addressing health-related expenses like braces and treatment for alcoholism. Although the payments initially alleviated stress, many of the health benefits diminished after two years.
Altman advocates for universal basic income, especially as advancements in artificial intelligence reshape the labor market and displace certain jobs.
Note: An earlier version of this story incorrectly identified the group conducting the study as OpenAI; it was actually Sam Altman’s nonprofit, OpenResearch.