Sam Altman, the CEO of OpenAI, has supported the largest basic income study in the United States to date. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study included approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of these individuals received $1,000 each month, referred to as the recipients, while the remaining participants, designated as the control group, received just $50.
Findings from the study indicated that those receiving the larger monthly payments enjoyed greater flexibility in pursuing employment that matched 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,” with recipients reportedly being more active in job searching but also more selective.
One participant expressed that the cash transfer allowed them to build up savings and be more discerning in job choices, saying, “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 mentioned that the financial support enabled them to accept a lower-paying entry position in a desired field, which eventually led to a six-figure salary within two years. “If I didn’t have the cash transfers, there is no way I could have taken that pay cut,” they stated.
The study did not reveal significant differences in employment rates between the recipients of the larger payments and the control group. Most recipients increased their spending primarily on essential needs, including food, housing, and transportation. The payments also helped cover health-related expenses, such as braces and treatment for alcoholism. While the financial assistance initially alleviated stress, the health benefits appeared to diminish after two years.
Altman has been an advocate for the concept of universal basic income, especially as artificial intelligence transforms the labor market and displaces certain jobs.
A correction was made to clarify that the study was conducted by OpenResearch, not OpenAI, as previously stated.