The CEO of OpenAI, Sam Altman, has financed the largest basic income experiment ever conducted in the United States. Through his nonprofit, OpenResearch, the initiative aimed to provide unconditional cash payments to individuals living below the poverty line over a three-year period.
The study involved approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, each earning less than $30,000 annually. One-third of the participants received $1,000 per month, while the remaining individuals in the control group were given only $50.
Results from the study indicated that those receiving the higher payments had greater freedom to pursue jobs that aligned with 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,” highlighting that recipients were not only job hunting but were also more selective in their choices.
One participant shared, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky,” emphasizing that they did not have to settle for an unsuitable job out of immediate financial necessity. Another participant mentioned taking a lower-paying entry-level job in their desired field, which eventually led to a six-figure salary after two years, stating, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
Despite the findings, the study reported no significant differences in employment rates between the recipients of the larger payments and the control group. The additional income primarily increased spending on essential needs, including food, housing, and transportation. The payments also provided support for health-related expenses, such as braces and treatment for alcoholism. Although the initial cash transfers alleviated some stress, many of the health benefits diminished after two years.
Sam Altman has been a strong advocate for the concept of universal basic income, particularly in light of the changes in the labor market due to advancements in artificial intelligence.
Correction: An earlier version of this article mistakenly identified the organization conducting the study. It was Sam Altman’s nonprofit OpenResearch, not OpenAI.