Sam Altman, the CEO of OpenAI, has funded the largest basic income experiment in the United States through his nonprofit organization, OpenResearch. The study aimed to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
Participants in the study included around 3,000 people aged 21 to 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 remaining participants, who served as the control group, received $50 monthly.
The findings revealed that those receiving the larger cash payments were able to adopt a more flexible approach to job searching, allowing them to seek positions that better matched their preferences. According to the study’s authors, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” Recipients were reportedly more active in their job searches while being selective about the positions they pursued.
One participant noted that the cash transfers allowed them to save money and be choosier in their job search. They explained, “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 that the financial support enabled them to accept a lower-paying entry-level job in their desired industry. Within two years, they reached a six-figure salary, stating, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
However, the study found no significant difference in employment rates between the group that received the larger amounts and the control group. Recipients mainly utilized their payments for essential needs, including food, housing, and transportation. Additionally, payments helped address health needs, such as dental treatment and support for alcoholism. While the cash transfers initially reduced stress, many health benefits diminished after two years.
Sam Altman advocates for the concept of universal basic income, especially as advancements in artificial intelligence reshape the job market and eliminate certain positions.