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 study provided unconditional cash payments to individuals living below the poverty line for a duration of three years.
The research involved around 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom had annual incomes below $30,000. One-third of the participants received $1,000 each month, dubbed the recipients, while the remaining individuals, known as the control group, were given $50.
Findings from the study indicated that those receiving the larger payments had greater flexibility in seeking jobs aligned with their preferences. The study’s authors 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 job-seeking but were more selective in their choices.”
One participant expressed that the financial support allowed them to be selective in their job search. They commented, “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 to find the right fit.”
Another recipient stated that the financial assistance allowed them to accept a lower-paying entry-level job in their desired field, which ultimately led to a six-figure salary within two years. They remarked, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study showed no significant differences in overall employment rates between those who received the larger payments and the control group. Recipients allocated their increased funds primarily toward essential needs such as food, housing, and transportation. The financial support also addressed health-related expenses, assisting individuals with needs like braces and addiction treatment. While the payments initially alleviated stress, many of the health benefits diminished over time.
Sam Altman advocates for the concept of universal basic income as a response to the changing labor market brought about by advancements in artificial intelligence, which may displace certain jobs.
A correction was issued regarding the organization responsible for conducting the study, clarifying that it was Sam Altman’s nonprofit OpenResearch, not OpenAI.