Sam Altman, the CEO of OpenAI, has sponsored the largest basic income experiment in the United States to date through his nonprofit, OpenResearch. This initiative involved providing unconditional cash payments to individuals living below the poverty line over a span of three years.
The study included 3,000 participants aged between 21 and 40, residing in Texas and Illinois, all earning less than $30,000 annually. One-third of these individuals received $1,000 a month, while the remaining participants received $50, serving as the control group.
According to the findings, those receiving the larger monthly payments enjoyed greater flexibility in their job search, allowing them to pursue positions that better matched their interests and career aspirations. The researchers stated, “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.”
A participant reflected on the impact of the cash transfers, saying, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky,” emphasizing that they could afford to wait for the right job rather than settling for a less desirable position.
Another recipient shared their experience of accepting a lower-paying entry-level job in a desired field, which eventually led to a six-figure salary within two years. They acknowledged that without the cash transfers, taking that pay cut would not have been an option.
The study revealed that there were no significant differences in employment rates between the larger payment recipients and the control group. Most of the increased spending among recipients went toward basic necessities such as food, housing, and transportation. The payments also allowed some individuals to cover healthcare expenses, including braces and treatment for alcohol use disorder. While the initial financial relief contributed to reduced stress, many of the associated health benefits diminished after two years.
Altman has been an advocate for universal basic income, especially as artificial intelligence transforms the job market and displaces certain types of employment.
In correction to previous reports, it should be noted that the study was conducted by Sam Altman’s nonprofit OpenResearch, not OpenAI.