Sam Altman, the CEO of OpenAI, has financed the largest basic income experiment in the U.S. through his nonprofit, OpenResearch. This initiative provided cash payments to individuals living below the poverty line for a duration of three years.
The study involved approximately 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 per month, while the remaining participants, serving as the control group, received only $50.
Results showed that those receiving the larger monthly checks had greater freedom to pursue job opportunities that matched their interests. According to the study authors, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” Recipients of the cash were found to be more active in job searching, but also more discerning in their choices.
A participant remarked on how the cash transfers allowed them to build savings, saying, “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.” Another recipient shared their experience of accepting a lower-paying entry-level job in their desired field, which eventually led to a six-figure salary within two years. They attributed their ability to take the pay cut directly to the cash transfers, stating, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study highlighted that there was no significant difference in employment levels between the recipients of the larger payments and the control group. The primary use for the funds among recipients was to cover essential needs, such as food, housing, and transportation. Additionally, the payments allowed recipients to address health issues, including braces and alcoholism treatment. While the initial financial support alleviated stress, many of the health benefits appeared to diminish after two years.
Altman advocates for universal basic income as a response to the shifting job landscape due to advancements in artificial intelligence that could displace certain jobs.
Note: An earlier version of this report incorrectly identified the organization conducting the research; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.