Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit, OpenResearch. The study aimed to provide unconditional cash payments to individuals living below the poverty line for three years.
Approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually, took part in the study. One-third of the participants received $1,000 per month, while the remaining participants, serving as a control group, received only $50.
The findings indicated that those receiving the larger payments had greater freedom in their job search. The study’s authors 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 my ability to save, I’m finally in a position to be picky. I don’t have to settle for a job I don’t want just for immediate income. I can hold out for the right opportunity.” Another recipient mentioned that the extra funds allowed them to accept a lower-paying entry-level position in their desired field, which ultimately led to a six-figure salary within two years. “Without the cash transfers, I’d never have been able to take that pay cut,” they said.
The study showed no significant difference in employment rates between the recipients of larger payments and the control group. Recipients predominantly spent the funds on basic necessities such as food, housing, and transportation, with some utilizing the payments for health-related expenses like braces and alcoholism treatment. Although the payments initially alleviated stress, many health improvements diminished after two years.
Sam Altman has advocated for universal basic income, especially as artificial intelligence continues to reshape the labor market and displace certain jobs.
Correction: An earlier version of this article incorrectly identified the organization conducting the study as OpenAI; it was actually Sam Altman’s nonprofit, OpenResearch.