Sam Altman, the CEO of OpenAI, has funded the most extensive 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 approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of these participants received $1,000 per month, while the remaining individuals in the control group received just $50.
Findings from the study indicated that recipients of the more substantial payments experienced greater flexibility in seeking jobs that aligned with their personal preferences. The authors noted that cash payments seemed to enhance people’s ability to make employment decisions that matched their individual circumstances and aspirations. According to the study, recipients were more proactive in job searching but tended to be more selective in their choices.
One participant shared, “Thanks to the cash transfer and the chance to accumulate savings, I can finally afford to be choosy,” adding, “I’m not compelled to accept a poor job just to make ends meet. I can wait to find the right opportunity.”
Another recipient mentioned that the financial aid enabled them to pursue a less lucrative entry-level job in their desired field, eventually leading to a six-figure salary within two years. The recipient remarked, “Without the cash transfers, it would have been impossible for me to take that initial pay cut.”
The study observed no significant difference in employment rates between the group receiving larger payments and the control group. Recipients predominantly used the funds to cover essential expenses, such as food, housing, and transportation. The payments also assisted with health-related needs, including treatments for issues like dental braces and alcoholism. Although the financial support helped alleviate stress initially, many of the associated health benefits diminished after two years.
Sam Altman has been vocal about advocating for universal basic income, particularly as advancements in artificial intelligence influence the job market and potentially displace workers.
Note: This article was corrected to clarify that the study was conducted by Sam Altman’s nonprofit, OpenResearch, not OpenAI.