Sam Altman, CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit, OpenResearch. The study provided unconditional cash payments to individuals living below the poverty line over a period of three years.
The research involved around 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 control group was given only $50.
Findings from the study indicated that those receiving the larger payments had greater flexibility in seeking employment that better suited their desires. The authors of the study pointed out, “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 remarked that the cash transfer allowed them to build savings and be selective 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 that they could afford to accept a lower-paid entry-level position in their desired field and subsequently achieved a six-figure salary within two years, attributing their ability to take the pay cut to the cash transfers.
The study revealed no significant differences in employment rates between payment recipients and the control group. Recipients primarily increased their spending on essential needs, with food, housing, and transportation being the largest expenses. The payments also enabled recipients to address health needs such as orthodontics and treatment for alcoholism. While the initial cash influx reduced stress, the associated health benefits appeared to diminish after two years.
Altman has been an advocate for universal basic income as advancements in artificial intelligence continue to alter the labor market and displace certain jobs.