Sam Altman, 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 for three years to individuals living below the poverty line.
The study involved approximately 3,000 participants aged 21 to 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 participants, forming the control group, received only $50.
Findings from the research indicated that those receiving the larger amounts experienced increased flexibility in their job searches, allowing for greater selectivity in their employment choices. The study’s authors noted that “cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values,” emphasizing that recipients were more actively searching for jobs they actually sought.
One study participant highlighted how the cash transfers enabled her to build savings and approach job hunting with a more selective mindset, 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 participant shared that receiving cash transfers allowed them to accept a lower-paying entry-level job in their desired field, which later 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 reveal any significant differences in employment levels between recipients and the control group; however, recipients increased their spending on essential needs, such as food, housing, and transportation. The payments also enabled some individuals to cover health expenses, including braces and treatment for alcoholism. While the payments initially alleviated stress, many of the health benefits diminished after two years.
Altman has been an advocate for universal basic income as artificial intelligence continues to reshape the labor market, potentially displacing certain jobs.