Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit, OpenResearch. This initiative partnered with researchers to provide unconditional cash payments to individuals living below the poverty line for 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. One-third of the participants received $1,000 per month, while the remainder, serving as a control group, received $50.
Findings indicated that those who received the larger payments had greater flexibility in searching for jobs that matched their preferences. The authors of the study 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 remarked, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky,” stating, “I don’t have to take a lousy job just because I need income right now. I have the opportunity to hold out and try and find the right fit.”
Another recipient shared their experience of accepting a lower-paid position in a desired field, which ultimately led to 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.
While the study showed no significant difference in employment rates between the larger payment recipients and the control group, it did reveal that the recipients increased their spending primarily on basic necessities such as food, housing, and transportation. Additionally, the payments assisted recipients in affording health-related expenses, including braces and alcoholism treatment. Although the payments initially alleviated stress, many of the associated health benefits diminished after two years.
Altman has advocated for universal basic income as artificial intelligence continues to transform the labor market and displace certain jobs.
Correction: An earlier version of this article incorrectly identified the organization conducting the study as OpenAI; it was Sam Altman’s nonprofit, OpenResearch.