Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit, OpenResearch. This initiative aimed to provide unconditional cash payments to individuals living below the poverty line over a period of three years.
The study involved around 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of these individuals received $1,000 each month, while the remainder, serving as a control group, received only $50.
According to the findings, those who received the larger payments had greater flexibility in their job searches, allowing them to pursue positions that were more in line with their personal 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. Recipients were more likely to be searching for a job, but they were more selective.”
One participant shared their experience in an interview, 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 revealed that they accepted a lower-paid entry-level position in a desired field and eventually achieved a six-figure salary within two years, crediting the cash transfers for enabling them to take that pay cut.
The study indicated that there was no significant difference in employment levels between those who received the larger cash payments and the control group. Recipients primarily increased their spending on basic necessities, with food, housing, and transportation being the largest expenditures. The payments also helped cover health-related expenses, such as braces and alcohol treatment. While the initial cash support reduced stress levels, many of the health benefits diminished after two years.
Altman has been an active advocate for universal basic income, particularly as artificial intelligence changes the labor landscape and displaces certain jobs.