Sam Altman, the CEO of OpenAI, has 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.
The study involved approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, all earning less than $30,000 annually. A third of the participants received $1,000 each month, while the remaining individuals in the control group were given $50.
Findings from the study revealed that those receiving the larger cash payments had greater flexibility in seeking jobs that suited their 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 expressed how the cash transfer allowed them to save, stating, “For once, I’m in a position to be picky. I don’t have to take a low-paying job just because I need income right now. I can wait and look for the right fit.” Another recipient explained that they took a lower-paying entry-level job in their desired field and achieved a six-figure salary within two years, adding, “Without the cash transfers, there’s no way I could have taken that pay cut.”
The study found no significant differences in employment rates between those who received larger payments and the control group. Recipients primarily increased their spending on basic necessities, with food, housing, and transportation being their largest expenses. The payments also assisted recipients in addressing health-related costs, such as braces and alcoholism treatment. While the initial cash support reduced stress, many of the associated health benefits disappeared after two years.
Altman has been an advocate for universal basic income as artificial intelligence continues to reshape the labor market and displace various jobs.
Note: An earlier version of this article incorrectly identified the organization conducting the study as OpenAI. It was, in fact, Sam Altman’s nonprofit, OpenResearch.