Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date. Conducted by his nonprofit, OpenResearch, the study provided unconditional cash payments to individuals living below the poverty line for a three-year period.
The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of the participants received $1,000 per month, categorized as recipients, while the remaining individuals, forming the control group, were given $50 monthly.
Results indicated that those receiving the higher payments had greater flexibility in seeking jobs that aligned with their preferences. The study’s 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 remarked that the cash transfers allowed them to save money adequately, enabling them to be choosy about job offers. “I don’t have to take a low-quality job just because I need income right now. I have the opportunity to hold out and try and find the right fit,” they said. Another participant shared how the financial support allowed them to accept a lower-paying entry position in a desired field, eventually leading to a six-figure salary within two years. They emphasized, “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 and the control group, with the participants primarily increasing their spending on essential needs such as food, housing, and transportation. The cash payments also aided in covering health-related expenses, including braces and alcoholism treatment. Although the payments initially alleviated stress, many of the health benefits diminished after two years.
Altman has been an advocate for universal basic income as artificial intelligence continues to redefine the job market and displace certain jobs.
A correction was noted in the reporting, clarifying that the study was conducted by Altman’s nonprofit OpenResearch, not OpenAI.