Sam Altman, the CEO of OpenAI, financed the largest basic income study in the United States to date. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
This study involved about 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. Participants were divided into two groups: one-third received $1,000 monthly, while the control group received just $50.
The findings indicated that those who received the larger cash payments had more freedom to seek jobs that aligned with their interests. 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 also more selective.”
One study participant shared their experience, stating that the cash transfers allowed them to build savings and be more discerning in their job search. They said, “I don’t have to take a terrible job just because I need income right now. I have the opportunity to hold out and try and find the right fit.”
Another recipient explained how the support enabled them to accept a lower-paying entry-level job in their desired field, which 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 did not identify significant differences in employment rates between the recipients and the control group. Spending patterns showed that recipients primarily used the funds for basic needs such as food, housing, and transportation. The payments additionally aided in addressing health needs like braces and treatment for alcoholism. While the cash assistance initially alleviated stress, many of the health benefits diminished after two years.
Sam Altman advocates for universal basic income, particularly as artificial intelligence continues to transform the job market and phase out certain positions.
Correction: An earlier version of this story incorrectly identified the group conducting the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.