Sam Altman, CEO of OpenAI, 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 over a three-year period.
The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, each earning less than $30,000 annually. One-third of the participants received $1,000 each month, while those in the control group received only $50.
The findings revealed that the individuals receiving the larger payments had greater flexibility in their job searches, allowing them to pursue employment that better suited their personal goals and values. 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 their experience, stating that the cash transfers allowed them to save, making it possible to be discerning in their job search. They expressed, “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 they could accept a lower-paying entry-level job in their desired field, which ultimately led to a six-figure salary within two years. They noted, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study did not show significant differences in employment levels between those receiving larger payments and the control group. Recipients mainly increased their spending on basic necessities such as food, housing, and transportation. The payments also assisted recipients in addressing health needs, including treatment for alcoholism and braces. Although the payments initially reduced stress levels, many of the health benefits diminished after two years.
Altman has been an advocate for the concept of universal basic income as artificial intelligence continues to transform 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 Sam Altman’s nonprofit OpenResearch.