Sam Altman, the CEO of OpenAI, has funded the most extensive basic income study in the U.S. to date through his nonprofit organization, OpenResearch. The initiative aimed to provide unconditional cash payments to individuals living below the poverty line over a three-year period.
The study involved approximately 3,000 participants, aged 21 to 40, from Texas and Illinois, all earning less than $30,000 annually. One-third of these individuals received $1,000 per month, while the remaining participants, forming a control group, received $50.
According to the study’s findings, those who received the larger payments experienced increased flexibility in their job searches, allowing them to pursue roles that aligned with their preferences and values. The authors noted, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.”
One participant expressed the impact of the cash transfer, 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 participant described how they were able to accept a lower-paying entry-level job in a desired field, which eventually led them to a six-figure salary after two years. They recognized that without the cash transfers, they would not have been able to make that initial pay cut.
The study indicated that there was no significant difference in overall employment rates between the two groups, with recipients primarily increasing their spending on essential needs such as food, housing, and transportation. The payments also enabled recipients to afford health-related expenses like braces and treatment for alcoholism. Although the financial assistance helped alleviate stress initially, many of the health benefits diminished after two years.
Altman has been an advocate for universal basic income, especially as artificial intelligence continues to reshape the labor market and potentially displace jobs.
Additionally, a correction has been made stating that the study was conducted by Sam Altman’s nonprofit OpenResearch, not OpenAI.