Sam Altman, CEO of OpenAI, has funded 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. One-third of the participants received $1,000 each month, while the remaining participants, serving as a control group, received only $50.
Findings from the study revealed that those receiving the larger cash payments had greater flexibility in seeking jobs that aligned with their preferences and goals. 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 shared, “Thanks to the cash transfer and the ability to save, I can finally afford to be picky,” and added, “I don’t have to accept a poor job just to earn income immediately. I can wait for the right opportunity.”
Another recipient mentioned that they accepted a lower-paying entry-level position in their desired field, which led to a six-figure salary within two years. They stated, “Without the cash transfers, I would never have taken that pay cut.”
The study did not indicate significant differences in employment levels between the group receiving the larger payments and the control group; those receiving the payments primarily increased their spending on essential needs such as food, housing, and transportation. Additionally, the payments assisted recipients in addressing health-related costs, like dental braces and treatment for alcoholism. While the payments initially alleviated stress, many health benefits diminished over the two-year period.
Sam Altman has been a strong advocate for universal basic income, particularly as advancements in AI continue to impact the labor market and displace certain jobs.
A correction has been issued to clarify that the study was conducted by Sam Altman’s nonprofit, OpenResearch, rather than OpenAI.