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 focused on providing unconditional cash payments to individuals living below the poverty line for three years.
Approximately 3,000 participants, aged 21 to 40, from Texas and Illinois, who earned less than $30,000 annually, were involved in the study. One-third of these participants received $1,000 monthly, while the remaining individuals in the control group received only $50.
Findings from the study revealed that those receiving the larger checks had greater flexibility to pursue jobs that better matched their interests. According to the authors of the study, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” The data indicated that while recipients were more likely to seek employment, they were also more selective in their job choices.
One participant expressed that the cash transfer allowed them to save money, saying, “I’m in a position for once to be picky,” and noted that they no longer felt pressured to accept unsatisfactory job offers. Another recipient shared their experience of taking a lower-paid position in a desired field, leading to a six-figure salary within two years. They attributed their ability to make that choice to the cash transfers.
The study did not reveal significant differences in employment levels between those receiving larger payments and the control group, indicating that recipients primarily increased their spending on essential needs, including food, housing, and transportation. The payments also assisted them in covering health-related expenses, such as braces and treatment for alcoholism. Although the initial stress relief was evident, the health benefits appeared to diminish after two years.
Altman has advocated for universal basic income, particularly in the context of AI advancements and their potential impact on the labor market and job availability.
Note: An earlier version of this article incorrectly stated that the study was conducted by OpenAI; it was conducted by Sam Altman’s nonprofit organization OpenResearch.