Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States to date. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for a span of three years.
The research involved 3,000 participants aged between 21 and 40 from Texas and Illinois, all earning less than $30,000 annually. A third of these individuals received $1,000 each month, while the remaining participants, forming the control group, were allocated $50.
Findings from the study indicated that those receiving the larger payments experienced greater flexibility in their job search, allowing them to pursue employment that better suited their preferences. “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values,” remarked the study’s authors. They noted that recipients were not only more likely to be job hunting, but also more selective in their choices.
In interviews, some participants shared their experiences. One individual expressed that the cash transfers enabled them to save money, putting them in a position to be more discerning in their job search. They stated, “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 participant reported taking a lower-paying entry-level job in a desired field, which ultimately led to a six-figure salary within two years. They attributed this opportunity to the cash transfers, noting, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”
Despite the benefits seen in employment selection, the study revealed no significant difference in employment levels between those receiving larger payments and those in the control group. Recipients primarily increased their spending on necessities such as food, housing, and transportation. Additionally, the payments facilitated the financing of health needs, including dental braces and alcoholism treatment. While the cash transfers initially reduced stress levels, many observed a decline in health benefits after two years.
Sam Altman advocates for universal basic income, especially as artificial intelligence continues to transform the job market and displace certain roles.
A correction has been made to clarify that the study was conducted by OpenResearch, not OpenAI as previously stated.