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 aimed to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study included approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of these participants received $1,000 per month, referred to as the recipients, while the remaining participants, serving as the control group, received $50 monthly.
Researchers found that those receiving the larger payments had greater freedom to seek jobs that matched their preferences. They noted that “cash can enhance individuals’ ability to make employment choices that reflect their unique circumstances, aspirations, and values.” The analysis indicated that recipients were more likely to be engaged in their job search but were selective about available positions.
One participant shared their experience, stating, “Thanks to the cash transfer, I’ve managed to save enough to be particular about my job choices,” emphasizing that they no longer felt pressured to accept unsatisfactory job offers due to immediate financial needs. Another recipient discussed how the cash transfers allowed them to accept a lower-paying entry-level job in their desired field, which eventually led to a six-figure salary within two years. “Without the cash transfers, I wouldn’t have been able to take that pay cut,” they remarked.
The study indicated no significant differences in employment rates between the larger payment recipients and the control group, with recipients primarily increasing their spending on essential needs such as food, housing, and transportation. Additionally, the payments aided in covering health expenses, including braces and treatment for alcoholism. While the initial cash transfers alleviated stress, many of the associated health benefits diminished after two years.
Sam Altman has been a strong advocate for universal basic income, particularly as artificial intelligence transforms the job market and displaces certain roles.
Correction: An earlier version of this article incorrectly identified the organization that conducted the study. It was Sam Altman’s nonprofit OpenResearch, rather than OpenAI.