Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States 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 around 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom had annual incomes of less than $30,000. One-third of the participants received monthly payments of $1,000, while the remaining participants, serving as a control group, received only $50 per month.
Results indicate that those receiving the larger payments experienced greater freedom in their job searches, allowing them to pursue employment that better aligned with their interests and values. 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 shared their experience, saying, “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, although they accepted a lower-paid entry-level job in a desired field, they were able to grow into a six-figure salary within two years due to the financial support. “If I didn’t have the cash transfers, there is no way I could have taken that pay cut,” they stated.
The study did not reveal significant differences in employment rates between the recipients and the control group. However, recipients increased their spending primarily on basic necessities, such as food, housing, and transportation. The funds also assisted recipients in covering health-related expenses, including braces and treatments for alcohol dependence. Although payments initially alleviated stress, many health benefits diminished after two years.
Sam Altman has been an advocate for universal basic income, especially in light of AI’s impact on the labor market and the potential displacement of jobs.
Correction: An earlier version of this article incorrectly identified the organization responsible for the study as OpenAI; it was, in fact, Sam Altman’s nonprofit, OpenResearch.