Sam Altman, the CEO of OpenAI, has financed the largest basic income study conducted 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 involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. Of these participants, one-third received $1,000 per month, while the remaining participants, known as the control group, were given $50 monthly.
Findings from the study indicated that those receiving the larger payments had greater flexibility in searching for jobs they truly desired. 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 remarked, “Thanks to the cash transfer and my ability to save, I can finally be picky,” explaining that they were no longer forced to accept unsatisfactory job offers out of immediate necessity. Another recipient shared how they took a lower-paying entry-level job in their desired field, which eventually led to a six-figure salary. They stated, “Without the cash transfers, I would not have been able to accept that pay cut.”
The study also revealed that there was no significant difference in employment rates between the recipients of the larger payments and the control group. Instead, recipients predominantly increased their expenditures on essential items such as food, housing, and transportation. The cash payments enabled recipients to address health-related expenses, including braces and treatment for alcoholism. While the initial payments alleviated stress, many of the health benefits diminished after two years.
Sam Altman has been an advocate for universal basic income as artificial intelligence continues to transform the labor landscape and displace certain jobs.
Note: An earlier version of this article inaccurately credited OpenAI with conducting the study, when it was, in fact, Sam Altman’s nonprofit, OpenResearch.