Sam Altman, CEO of OpenAI, financed the largest basic income study in the United States to date through his nonprofit, OpenResearch. This initiative collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for three years.
The study involved around 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom had annual incomes below $30,000. One-third of these participants received $1,000 per month, while the rest, serving as a control group, received $50.
Findings revealed that those receiving larger payments had greater freedom to pursue jobs that aligned with their interests. The study’s authors noted that cash payments could enhance individuals’ ability to make employment choices that suit their personal situations and aspirations. Recipients were more active in job searching and tended to be more selective.
One participant shared that due to the cash transfer and increased savings, they could afford to be choosy about job offers, 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 recipient mentioned that the financial support allowed them to take a lower-paying entry-level job in their desired field, which ultimately led to a six-figure salary in just two years.
The research indicated that there was no significant difference in employment rates between the larger payment recipients and the control group. However, recipients reported increased spending on essential needs, including food, housing, and transportation. Additionally, the cash transfers aided in covering health expenses, such as braces and alcoholism treatment. While the initial payments reduced stress, many health benefits diminished after two years.
Sam Altman advocates for universal basic income as a response to how artificial intelligence is transforming the job market and displacing certain employment opportunities.
Note: An earlier version of this article incorrectly attributed the study to OpenAI instead of Sam Altman’s nonprofit OpenResearch.