Sam Altman, the CEO of OpenAI, financed the largest basic income experiment in the United States through his nonprofit organization, OpenResearch. The initiative provided unconditional cash payments to individuals living below the poverty line over a three-year period.
The study included around 3,000 participants aged 21 to 40 from Texas and Illinois who had annual incomes below $30,000. One-third of the participants received $1,000 per month, while the remainder, serving as the control group, received $50.
Findings indicated that those who received the larger payments enjoyed greater flexibility in job hunting, allowing them to seek positions that better aligned with their personal goals and values.
The study’s authors stated, “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.”
In interviews, participants shared their experiences. One individual noted that the cash transfers enabled them to save and be choosy about job opportunities, 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 participant explained that they were able to accept a lower-paying entry-level role in a desired field, which eventually 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 revealed no significant difference in employment rates between recipients of the larger payments and the control group. The increased funds primarily went toward essential expenses like food, housing, and transportation. Recipients also reported using payments to address health issues, such as braces and alcoholism treatment. While the cash transfers initially alleviated stress, many of the associated health benefits diminished after two years.
Altman has been an advocate for universal basic income, especially in light of how artificial intelligence is transforming the job market and displacing certain roles.
Correction: An earlier version of this article inaccurately attributed the study to OpenAI, when it was actually conducted by Sam Altman’s nonprofit OpenResearch.