Cash for Choices: How Basic Income Redefines Job Searching

Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. This initiative aimed 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 annually. One-third of these participants received $1,000 per month, while the remaining individuals, forming the control group, received $50.

Findings from the study indicated that those receiving the larger payments had greater flexibility in seeking employment that matched their interests. The authors of the study noted that cash payments appeared to enhance the recipients’ ability to make employment choices aligned with their personal circumstances, goals, and values. The data showed that recipients were more active in their job searches, yet they were more selective about the positions they pursued.

One participant expressed that the cash transfers allowed them to build savings and be more discerning about job opportunities, stating, “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 their experience of accepting a lower-paid entry-level position in a desired field, which ultimately led to a six-figure salary within two years, emphasizing that the cash transfers made that career move possible.

The study revealed no significant differences in overall employment levels between those who received the larger payments and those in the control group. Recipients primarily utilized the funds to cover basic necessities such as food, housing, and transportation. The payments also contributed to covering health-related expenses, including braces and treatment for alcoholism. While the payments initially alleviated stress, many health benefits diminished after a two-year period.

Sam Altman has advocated for the concept of universal basic income as artificial intelligence reshapes the job market and displaces certain jobs.

Note: An earlier version of this story mistakenly identified the organization behind the study; it was conducted by Sam Altman’s nonprofit OpenResearch, not OpenAI.

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