Sam Altman, CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit, OpenResearch. The initiative provided unconditional cash payments to individuals living below the poverty line for a span of three years.
The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, each earning less than $30,000 annually. One-third of the participants received $1,000 monthly, while the remainder, serving as the control group, received $50.
Findings indicated that those receiving the larger payments experienced greater flexibility in their job searches, allowing them to pursue positions that aligned more closely with their personal goals and values. 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 participant shared their experience, stating, “Because of the cash transfer and being able to build up my savings, I’m in a position for once to be picky. 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 mentioned that they accepted a lower-paid entry-level position in a desired field, which eventually led to a six-figure salary within two years, emphasizing, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
Despite the positive impacts on job search flexibility and personal expenditure on basic needs, the study revealed that there was no significant difference in employment rates between the recipients of larger payments and the control group. Most of the increased spending was directed towards essential items such as food, housing, and transportation, with some funds allocated for health needs like braces and alcohol treatment. Although the payments helped alleviate stress initially, many of the health benefits diminished after a period of two years.
Altman has been an advocate for universal basic income as artificial intelligence transforms the labor market and reduces the availability of certain jobs.
A correction was made to clarify that the study was conducted by OpenResearch, not OpenAI.