Sam Altman, CEO of OpenAI, has financed the largest basic income study in the United States. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for a three-year period.
The study involved about 3,000 participants aged 21 to 40 from Texas and Illinois, all earning under $30,000 annually. One-third of the participants received $1,000 monthly, while the remaining participants, serving as a control group, received just $50.
Findings from the study indicated that those receiving the larger payments had greater flexibility in pursuing jobs that better suited their interests. The authors noted that cash payments could enhance recipients’ ability to make employment choices that align with their personal goals and values. Recipients demonstrated an increased likelihood of searching for jobs but tended to be more selective in their choices.
One study participant remarked that the cash transfers allowed them to build savings and be 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-paid position in a desired field, which eventually led to a six-figure salary within two years, attributing this success partially to having the financial support from cash transfers.
The research indicated no significant difference in employment rates between those who received larger payments and the control group. It was observed that recipients mainly increased their spending on essential needs, including food, housing, and transportation, and the payments helped cover health-related expenses like braces and treatment for alcoholism. Although the payments initially alleviated stress, many of the associated health benefits diminished after two years.
Altman has expressed support for universal basic income, particularly as artificial intelligence transforms the job market and displaces certain employment opportunities.
Correction: An earlier version of this article incorrectly identified the organization that conducted the study as OpenAI; it was actually Sam Altman’s nonprofit, OpenResearch.