Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. This initiative aimed to provide unconditional cash payments to individuals living below the poverty line for a span of three years.
The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of the participants received $1,000 each month, while the remaining individuals in the control group were given only $50.
Findings from the study indicated that recipients of the larger payments had greater flexibility in seeking jobs that matched their preferences. 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 search for jobs but tended to be more selective in their choices.
One participant expressed how the cash transfers allowed them to be choosier about job opportunities, 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.” Another recipient highlighted their ability to take a lower-paying entry-level job in their desired field, which ultimately led to a six-figure salary after two years, stating, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study revealed no significant employment differences between the recipients and the control group. Instead, recipients mainly increased their spending on essential needs, with food, housing, and transportation being the primary expenditures. Payments also enabled recipients to address health issues, such as braces and treatment for alcoholism. While the initial cash transfers reduced stress levels, many of the health benefits began to diminish after two years.
Sam Altman has been an advocate for universal basic income as artificial intelligence continues to reshape the labor market and displace certain jobs.
This article corrects an earlier version, which inaccurately attributed the conducting of the study to OpenAI instead of Sam Altman’s nonprofit, OpenResearch.