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 for a duration of three years.
The study involved about 3,000 participants aged between 21 and 40, hailing from Texas and Illinois, all of whom reported annual earnings of less than $30,000. Of these participants, one-third received $1,000 a month (referred to as recipients), while the remaining individuals formed a control group, receiving only $50.
Findings from the study revealed that those receiving larger monthly payments enjoyed greater freedom in job searching, allowing them to seek employment that truly matched their interests and ambitions. The authors of the study highlighted this, noting, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” Though recipients were more likely to look for jobs, they exhibited increased selectivity in their choices.
One participant remarked on the benefits of the cash transfers, stating that having the ability to save allowed them the luxury of being discerning in job selection. “I don’t have to take a bad job just because I need income right now. I have the opportunity to hold out and try and find the right fit,” they noted.
Another participant shared how the support enabled them to accept a lower-paying entry-level position in a desired field, which ultimately led them to attain 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 explained.
Despite the positive impact on individual agency and the ability to pursue better job matches, the study found no significant disparity in overall employment rates between recipients and the control group. The additional cash primarily increased spending on essential needs such as food, housing, and transportation. Additionally, the payments were beneficial for health-related expenses, including braces and treatment for issues like alcoholism. However, while the initial financial aid helped reduce stress levels, many participants reported that these health benefits diminished after two years.
Sam Altman advocates for universal basic income as a strategy to adapt to the changing labor landscape brought on by advances in artificial intelligence which could phase out certain jobs.
It’s important to note that an earlier version of this article incorrectly attributed the study to OpenAI instead of OpenResearch.
This study serves as a hopeful indication of how unconditional cash payments can empower individuals, enabling them to make choices aligned with their true aspirations and fostering potential career advancement rather than merely surviving from paycheck to paycheck. Such initiatives may pave the way for broader discussions on the need for social safety nets in an era increasingly influenced by technology.