Sam Altman, the CEO of OpenAI, has financed the largest basic income research project in the United States to date. His nonprofit organization, OpenResearch, collaborated with academic 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 21 to 40 from Texas and Illinois, all of whom had annual incomes below $30,000. Of those participants, one-third received $1,000 each month, while the remaining participants, serving as the control group, received only $50.
The findings indicated that recipients of the larger cash payments had greater flexibility in seeking jobs that better matched their interests. 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 were more likely to be searching for a job, but they were more selective.”
One study participant shared that the cash transfers allowed them to build savings, providing the opportunity to be choosy about job opportunities. They expressed, “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 mentioned being able to accept a lower-paying entry-level position in a desired field, which ultimately led to a six-figure salary within two years. They attributed their ability to take the initial pay cut to the cash transfers, stating, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”
The study revealed no significant differences in overall employment rates between the recipients of the larger payments and those in the control group. Recipients primarily increased their spending on essential needs such as food, housing, and transportation. The payments also aided in covering health-related expenses like braces and treatments for alcoholism. Although the payments initially alleviated stress, many of the health benefits diminished after two years.
Sam Altman has been an advocate for universal basic income, especially as the development of artificial intelligence continues to alter the labor market and result in job losses.
Correction: An earlier version of this article inaccurately identified the organization responsible for conducting the study. It was Sam Altman’s nonprofit OpenResearch, not OpenAI.