Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States to date. Conducted by his nonprofit organization, OpenResearch, the study aimed to provide unconditional cash payments to individuals living below the poverty line over a three-year period.
The research involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of the participants received $1,000 per month, while the remaining participants, who served as the control group, received $50.
The results indicated that those receiving the larger payments had greater flexibility in seeking employment that 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 shared that thanks to the cash transfer and an ability to save, they could afford to be more discerning with job offers, 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 pointed out that they managed to accept a lower-paying entry-level position in a field they aspired to work in, which ultimately led to a six-figure salary within two years. They acknowledged, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study found no significant difference in overall employment levels between those who received the larger payments and the control group. Recipients tended to increase their spending primarily on basic necessities such as food, housing, and transportation. The cash payments also helped cover health-related expenses, including braces and alcohol treatment. Although the payments initially alleviated stress, many reported that health benefits diminished after two years.
Sam Altman has advocated for universal basic income in response to the changes brought about by AI in the labor market and the potential loss of jobs.
It should be noted that a previous version of this article incorrectly identified the organization conducting the study as OpenAI when it was, in fact, OpenResearch.