Sam Altman, the CEO of OpenAI, has financed the largest basic income experiment in the United States to date through his nonprofit organization, OpenResearch. The initiative aimed to provide unconditional cash payments to individuals living below the poverty line for a period of three years.
Around 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually, were involved in the study. One-third of these individuals received $1,000 each month, while the remaining participants, who served as the control group, were given $50.
The findings of the study indicated that those who received the larger payments were better positioned to seek out jobs that aligned with their personal aspirations. The authors of the research 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 their experience, stating, “Because of the cash transfer and being able to build up my savings, 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. I have the opportunity to hold out and try and find the right fit.” Another participant recounted how they accepted a lower-paying entry-level role in a desired field and eventually reached a six-figure salary within two years, attributing that success to the cash transfers.
The study revealed that there was no significant difference in employment rates between those receiving the larger payments and those in the control group. Recipients mainly increased their spending on basic needs, with food, housing, and transportation being the primary expenses. Payments also assisted recipients in addressing health concerns, such as dental work and therapy for alcoholism. While the payments initially alleviated some stress, the health benefits appeared to diminish after two years.
Sam Altman has been a strong advocate for the concept of universal basic income, particularly as artificial intelligence continues to transform the job market and displace certain roles.
Correction: An earlier version of this article incorrectly identified the organization that conducted the study as OpenAI; it was, in fact, Sam Altman’s nonprofit OpenResearch.