Sam Altman, the CEO of OpenAI, has funded the largest basic income study conducted in the United States to date. His nonprofit organization, OpenResearch, partnered with researchers to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study involved approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, all earning less than $30,000 per year. One-third of the participants received $1,000 a month, while the remaining individuals, who served as the control group, received $50.
Findings from the study indicated that those receiving the larger payments had greater flexibility in job searching and were more likely to pursue positions that suited their preferences. The 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 searching for a job, but they were more selective.”
One participant expressed, “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 recipient shared how the cash enabled them to accept a lower-paid entry-level position in a desired field, which ultimately led to a six-figure salary in two years. They stated, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”
The study revealed that there were no significant differences in overall employment levels between those who received larger payments and those in the control group. However, recipients increased their spending primarily on basic necessities such as food, housing, and transportation. The payments also assisted recipients in addressing health needs, including braces and treatment for alcoholism. While the initial cash support alleviated stress, many of the health benefits diminished after two years.
Sam Altman has been an advocate for universal basic income, especially considering how AI technology is transforming the labor market and displacing certain jobs.
Correction: An earlier version of this article inaccurately identified the organization that conducted the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.