Sam Altman, the CEO of OpenAI, has financed the largest basic income experiment in the United States. This initiative, conducted by his nonprofit OpenResearch, aimed to provide unconditional cash payments to individuals living below the poverty line for a three-year period.
The study involved approximately 3,000 participants between the ages of 21 and 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of the participants received $1,000 a month, while the remaining group, serving as the control, was given $50.
Findings from the study indicated that those receiving the larger payments had greater freedom to pursue jobs that matched their personal 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 reflected on the impact of the cash payments, 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. I have the opportunity to hold out and try and find the right fit.”
Another recipient shared their experience of accepting a lower-paying entry-level position in a desired field, which eventually led to a six-figure salary within two years. They noted, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study did not reveal significant differences in employment rates between the recipients of the larger payments and those in the control group. Recipients primarily increased their spending on essential needs such as food, housing, and transportation. The payments also assisted recipients with healthcare costs, including braces and alcoholism treatment. While the financial support initially alleviated stress, many of the health benefits diminished after two years.
Sam Altman has been an advocate for universal basic income in light of the transformative effects of AI on the job market, which is likely to displace certain employment opportunities.
Correction: An earlier version of this article incorrectly identified the organization that conducted the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.