Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date. His nonprofit, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for a three-year period.
The study involved roughly 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 per month, while the remaining participants, serving as a control group, received just $50.
Findings from the study indicated that participants receiving the larger payments experienced increased flexibility in their job searches, allowing them to pursue positions that better aligned with their personal preferences.
According to the study’s authors, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” Those who received the larger payments were more likely to seek employment but were also more selective in their choices.
One participant noted, “Because of the cash transfer and being able to build up my savings, I’m in a position for once to be picky.” They elaborated that they could afford to wait for a job that was a better fit rather than taking any job out of immediate financial necessity.
Another recipient mentioned that the cash transfers enabled them to accept a lower-paying entry-level position in their desired field, which ultimately led to them achieving a six-figure salary within two years. They stated, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study found no significant difference in employment rates between the recipients of the larger payments and the control group. The recipients mainly increased their spending on essential needs such as food, housing, and transportation, as well as healthcare costs, including treatment for braces and addiction issues. Initial reductions in stress due to the payments appeared to diminish after two years.
Sam Altman has been an advocate for universal basic income, particularly as artificial intelligence continues to evolve the labor market and displace certain jobs.
Note: An earlier version of this article incorrectly identified the organization conducting the study; it was Sam Altman’s nonprofit, OpenResearch, not OpenAI.