Cash Transfers: A Game Changer for Job Seekers?

Sam Altman, the CEO of OpenAI, has financially supported the largest basic income study conducted in the United States. Through his nonprofit, OpenResearch, researchers provided unconditional cash payments to individuals living below the poverty line for a three-year period.

A recent study indicates that the pill form of Novo Nordisk’s medication Ozempic can significantly lower the risk of heart attacks and strokes.

The basic income study involved around 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. Participants were divided into two groups: one third received $1,000 per month, while the control group was given only $50.

Findings revealed that those receiving larger payments had greater flexibility in job hunting. The researchers 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 study participant shared, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky,” emphasizing the freedom to seek a suitable job without immediate financial pressure. Another recipient reported taking a lower-paying entry-level position in a desired field, ultimately leading to a six-figure salary within two years, crediting the cash transfers with enabling that opportunity.

The study did not reveal significant differences in employment rates between those who received the larger payments and the control group. Recipients primarily used the funds to cover essential living expenses, including food, housing, and transportation. The payments also assisted individuals with health-related expenses, such as braces and alcohol treatment. Although the cash transfers initially alleviated stress, many health benefits diminished after two years.

Altman supports universal basic income as a response to the changing labor market caused by advancements in artificial intelligence that may displace some jobs.

A previous version of this article incorrectly attributed the study to OpenAI instead of Altman’s nonprofit, OpenResearch.

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