Sam Altman, the CEO of OpenAI, has financed 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 over a three-year period.
The research 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 participants in the control group received only $50.
The findings revealed that those receiving the larger checks gained more freedom to pursue jobs aligned with their preferences. 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. Recipients were more likely to be searching for a job, but they were more selective.”
One participant expressed their newfound ability to be choosy in job hunting due to the cash transfers, stating, “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 mentioned that they could accept a lower-paying entry-level job in a desired field, eventually leading to a six-figure salary within two years, adding, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study found no significant differences in employment rates between those who received the larger payments and those in the control group. Recipients primarily spent the cash on basic needs, with food, housing, and transportation being the main expenses. Additionally, the payments were utilized for health-related needs, including braces and treatment for alcoholism. While the initial cash support alleviated stress, many of the health improvements diminished after two years.
Altman has been an advocate for universal basic income as a response to the changes in the labor market driven by artificial intelligence.
Note: An earlier version of this article incorrectly attributed the conducting of the study to OpenAI instead of Sam Altman’s nonprofit OpenResearch.