Sam Altman, the CEO of OpenAI, has sponsored the largest basic income research project in the United States. Through his nonprofit organization, OpenResearch, the study provided unconditional cash payments to individuals living below the poverty line for a three-year period.
The research involved approximately 3,000 participants aged 21 to 40 in Texas and Illinois, all earning below $30,000 annually. One-third of them received $1,000 per month, while the others, forming the control group, were given $50.
The findings indicated that those receiving the higher cash amounts had greater freedom to seek employment that matched 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 not only searched for jobs but were also more discerning in their choices.
One study participant shared that the cash transfers allowed them to save money, enabling them to be selective in their job search. They stated, “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 recipient mentioned that they accepted a lower-paid entry-level position in their desired field, which eventually led to a six-figure salary within two years. They attributed this success to the financial support received through the cash transfers, saying, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”
The research revealed no significant differences in employment rates between those who received the larger payments and the control group. Instead, recipients primarily allocated the cash toward essential needs such as food, housing, and transportation. The payments also assisted in covering health-related expenses like dental work and addiction treatment. While initial stress relief was noted among recipients, many of the health benefits diminished after two years.
Sam Altman advocates for universal basic income as a response to the disruptions in the labor market caused by advances in artificial intelligence.
Note: A previous version of this article incorrectly identified the organization conducting the study as OpenAI; it was actually Sam Altman’s nonprofit OpenResearch.