Sam Altman, CEO of OpenAI, has funded the largest basic income study ever conducted in the United States through his nonprofit organization, OpenResearch. This research initiative provided unconditional cash payments to individuals living below the poverty line over a three-year period.
The study involved approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of these participants received $1,000 per month, while the remainder, serving as a control group, received $50.
Findings from the study indicated that those who received the larger payments were better able to pursue jobs that aligned with their personal aspirations. The authors 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 be searching for a job, but they were more selective.”
One participant highlighted how the cash transfers allowed them to be more discerning in their job search, 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 taking a lower-paid entry-level position in a desired field, which ultimately led to a six-figure salary within two years, emphasizing that without the cash transfers, they would not have been able to accept that initial pay cut.
The research indicated no significant differences in employment levels between the recipients of the larger payments and the control group. Recipients primarily increased their spending on essential needs such as food, housing, and transportation. Additionally, the payments assisted recipients in covering health-related expenses, including braces and treatment for alcoholism. While the transfers initially alleviated stress, many of the associated health benefits diminished after two years.
Sam Altman advocates for universal basic income as a viable solution to the labor market changes brought about by advancements in artificial intelligence, which may displace certain jobs.
A correction was issued regarding the study’s conducting group; it was led by Altman’s nonprofit OpenResearch, not OpenAI.