Sam Altman, the CEO of OpenAI, sponsored the largest basic income study in the United States to date through his nonprofit, OpenResearch. The initiative aimed to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. A third of these participants received $1,000 each month as recipients, while the remaining participants, who made up the control group, were given $50 monthly.
Results from the study indicated that those receiving the larger payments experienced greater flexibility in their job searches. 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 were also 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,” and added, “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 were able to accept a lower-paying entry-level job in a desired field, which eventually led to a six-figure salary within two years. They remarked, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study did not find significant differences in employment levels between the recipients of the larger payments and the control group. Recipients mostly increased spending on basic necessities, with food, housing, and transportation being the largest expenditures. Additionally, the payments enabled them to address health-related needs such as braces and alcohol treatment. Although the cash transfers initially alleviated stress, many health benefits diminished over time.
Sam Altman is a vocal advocate for universal basic income, particularly as advancements in artificial intelligence continue to reshape the labor market and displace certain jobs.