Sam Altman, the CEO of OpenAI, has financed the most extensive 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 over a three-year period.
The study involved about 3,000 participants aged 21 to 40 from Texas and Illinois, all earning below $30,000 annually. One-third of these participants received $1,000 per month, while the remaining participants received $50 as a control group.
Research results indicated that those receiving the larger payments enjoyed greater flexibility in seeking employment that aligned with their preferences.
“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,” the authors of the study noted.
In an interview, one participant shared how the cash transfer allowed them to save money, saying, “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 explained that they could accept a lower-paying entry-level role in their desired field, which eventually led them to earn a six-figure salary within two years. “If I didn’t have the cash transfers, there is no way I could have taken that pay cut,” they mentioned in an interview.
The study did not reveal significant differences in employment rates between those who received higher payments and the control group. Recipients mostly increased their expenditures on essential items, with food, housing, and transportation being the largest. Additionally, the cash payments assisted them in covering health-related expenses, such as braces and treatment for alcoholism. Although the initial payments reduced stress, many health benefits diminished after two years.
Sam Altman has been an advocate for universal basic income, particularly as artificial intelligence reshapes the job market and leads to job displacement.
A correction has been made regarding the organization responsible for the study, clarifying that it was Sam Altman’s nonprofit OpenResearch, not OpenAI, that conducted the research.