Sam Altman, the CEO of OpenAI, has financed the largest universal basic income study in the United States to date through his nonprofit, OpenResearch. The study aimed to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
The research involved approximately 3,000 participants aged between 21 and 40 in Texas and Illinois, all earning less than $30,000 annually. One-third of these participants received $1,000 per month, while the remaining participants, serving as a control group, were given $50 a month.
Findings from the study indicated that those receiving the larger payments experienced greater flexibility in job searching, allowing them to pursue employment that better aligned with their preferences. The authors of the study noted that “cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” Recipients were found to be more active in their job search, though they were also more selective in their choices.
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,” and added, “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 participant mentioned that the cash transfers allowed them to accept a lower-paying entry-level position in their desired field, which ultimately led to a six-figure salary after two years, stating, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”
While the study did not reveal significant differences in employment levels between cash recipients and the control group, it found that recipients mainly used the payments for essential expenses, including food, housing, and transportation. The cash also helped cover health-related expenses, such as braces and treatment for alcoholism. Although the payments initially alleviated stress, many of these health benefits diminished after two years.
Sam Altman has advocated for universal basic income, particularly in light of AI’s impact on the job market, which may displace certain jobs.
Note: This article has been corrected to clarify that the study was conducted by OpenResearch, not OpenAI.