Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. The study provided unconditional cash payments to individuals living below the poverty line for three years.
In the research, around 3,000 participants aged between 21 and 40 from Texas and Illinois, who earned less than $30,000 annually, were involved. One-third of these individuals received $1,000 each month, while the rest of the participants, who constituted the control group, received $50.
Findings revealed that those receiving the larger cash payments had greater flexibility in pursuing jobs that aligned with their interests. The study’s authors noted, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” While recipients were more active in job searching, they were also more selective about opportunities.
One participant remarked that the cash transfer allowed them to build savings, enabling them to be picky about job offers without the pressure of needing immediate income. Another participant shared that receiving the cash allowed them to accept a lower-paid position in their desired field, which eventually led to a six-figure salary within two years, stating, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”
The study found no significant difference in employment rates between those receiving larger payments and the control group. However, recipients typically increased their spending on essential needs such as food, housing, and transportation. The payments also assisted recipients in covering health-related expenses. Although the payments initially alleviated stress, many of the health benefits diminished after two years.
Sam Altman advocates for universal basic income, particularly as advancements in AI continue to reshape the labor market and displace certain jobs.
A correction has been made regarding the organization that conducted the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.