Sam Altman, the CEO of OpenAI, has funded the largest basic income study conducted in the United States to date. Through his nonprofit organization, OpenResearch, he partnered with researchers to provide unconditional cash payments to individuals living below the poverty line for a period of three years.
The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. Of these, one-third received $1,000 each month, while the remaining participants, serving as a control group, received $50.
Findings from the study indicated that those receiving the larger monetary amounts experienced greater flexibility in pursuing job opportunities that matched their preferences. The authors of the study noted, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values. Recipients were more likely to be searching for a job, but they were more selective.”
One participant expressed that the cash transfers allowed them to build savings and become more discerning in their job search, stating, “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 shared their experience of taking a lower-paying entry-level position in their desired field, which eventually led to a six-figure salary within two years, crediting the cash transfers as crucial to making that transition possible.
Despite these benefits, the study revealed no significant differences in overall employment rates between those who received the larger payments and those in the control group. However, recipients reported increased spending on basic necessities, including food, housing, and transportation. The payments also assisted in addressing health-related needs, such as braces and treatment for alcoholism. While the initial cash assistance alleviated stress, many of the associated health benefits diminished after two years.
Sam Altman has been an advocate for universal basic income, especially as advancements in artificial intelligence continue to transform the labor market and displace certain jobs.
A correction has been made regarding the conducting organization of the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.