Sam Altman, the CEO of OpenAI, financed the largest basic income research project in the United States. Through his nonprofit organization, OpenResearch, he collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom had annual earnings below $30,000. One-third of these participants received $1,000 monthly, while the remaining participants, serving as a control group, received $50.
Results showed that those receiving the larger payments had greater flexibility in their job searches, allowing them to pursue positions that resonated more with their personal preferences and values. 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.”
In interviews, participants shared their experiences. One recipient expressed, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky,” adding, “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 noted that the financial assistance enabled them to accept a lower-paying entry-level job in a desired field, which eventually led to a six-figure salary after two years. “If I didn’t have the cash transfers there is no way I could have taken that pay cut,” they said.
The study indicated that there was no significant difference in employment rates between the recipients of larger payments and the control group. However, recipients did report increased spending on essential items, including food, housing, and transportation. The payments also helped cover health-related expenses like braces and treatment for alcoholism. While the financial support initially alleviated stress, many of the health benefits diminished after two years.
Altman has been an advocate for the concept of universal basic income, particularly as advancements in artificial intelligence disrupt the job market and lead to job displacement.
Additionally, a correction was made regarding the organization that conducted the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.