Sam Altman, CEO of OpenAI, funded the largest basic income study conducted 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 for a duration of three years.
The study involved approximately 3,000 participants aged 21 to 40, hailing from Texas and Illinois, all of whom earned under $30,000 annually. About one-third of these participants received monthly payments of $1,000, while the remaining participants, serving as the control group, were given $50.
Findings from the study indicated that those receiving the larger payments had increased freedom to pursue jobs that better matched their preferences. 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 how the cash transfers allowed them to build savings, stating, “For once, I’m in a position 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 find the right fit.” Another recipient discussed how they were able to accept a lower-paying entry-level job in a desired field, later reaching a six-figure salary within two years, attributing their ability to take the pay cut to the cash transfers.
Despite the support from cash payments, the study reported no significant differences in employment rates between the recipients and the control group. Recipients primarily used the money to cover basic needs, including food, housing, and transportation, and it helped address health-related expenses such as braces and alcoholism treatment. Although the payments initially alleviated stress, many of the health benefits diminished after two years.
Altman has advocated for universal basic income as a response to the job market disruptions caused by advances in artificial intelligence.
Note: An earlier version of this article incorrectly attributed the study’s conducting organization as OpenAI instead of Sam Altman’s nonprofit, OpenResearch.