Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States to date. His nonprofit organization, OpenResearch, collaborated with researchers to provide individuals living below the poverty line with unconditional cash payments over a span of three years.
The study involved approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. A third of the participants received $1,000 per month as cash payments, while the remaining participants in the control group received only $50 per month.
The findings indicated that those who received the higher payments had greater flexibility to pursue jobs 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 also more selective.”
One participant shared their experience, stating, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky. 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 highlighted that they took a lower-paying 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 find significant differences in employment levels between those who received larger payments and the control group, as recipients primarily increased their spending on basic needs such as food, housing, and transportation. Additionally, the cash payments allowed recipients to address health needs, including treatment for alcohol dependency and dental care. While the payments initially alleviated stress, many of the associated health benefits diminished after two years.
Altman has been a strong advocate for universal basic income, particularly in light of the impact of artificial intelligence on the labor market and the potential displacement of jobs.
Correction: An earlier version of this article mistakenly identified the organization conducting the study as OpenAI, when it was actually Sam Altman’s nonprofit, OpenResearch.