Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit, OpenResearch. The initiative provided unconditional cash payments to individuals living below the poverty line for a duration of three years.
The research involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning below $30,000 annually. A third of the participants received $1,000 per month, while the remaining participants, serving as the control group, were given $50.
Findings from the study indicated that those receiving the larger payments had greater freedom to seek employment that aligned with their personal 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 explained that the cash transfer allowed them to build up savings, enabling them to be more selective in their job search. They stated, “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 eventually led to a six-figure salary in just 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 significant differences in employment levels between the larger payment recipients and the control group. Recipients primarily increased their spending on essential needs, with food, housing, and transportation being the main expenditures. The additional payments also allowed recipients to afford health-related expenses such as dental braces and treatment for alcoholism. While the payments initially alleviated stress, many of the health benefits diminished after two years.
Altman, who advocates for universal basic income in the context of job displacement due to advancements in artificial intelligence, continues to support initiatives aimed at addressing economic inequality.