Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. This initiative involved providing unconditional cash payments to individuals living below the poverty line over a three-year period.
The study encompassed around 3,000 participants aged between 21 and 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 remaining participants, serving as a control group, were given $50.
The findings indicated that those receiving the higher cash payments had greater flexibility to pursue jobs that better matched their preferences. The authors of the study noted that cash assistance enhanced individuals’ ability to make employment decisions in line with their personal goals and values. Recipients were more actively seeking employment but were also more discerning about job opportunities.
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. 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 the financial support allowed them to accept a lower-paying entry-level role 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 revealed no significant differences in employment levels between those who received the larger payments and the control group. Recipients primarily increased their spending on essential items, with food, housing, and transportation being the main expenditures. Additionally, the payments assisted with health-related costs, such as braces and treatment for alcoholism. Although the payments initially alleviated stress, many of the health benefits diminished after two years.
Altman has been a strong advocate for universal basic income, particularly as advancements in AI continue to transform the job market and lead to job displacement.
This article has been updated to correct that the study was conducted by OpenResearch, not OpenAI.