Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit, OpenResearch. The initiative provided 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 earning less than $30,000 annually. One third of the participants received $1,000 each month, referred to as recipients, while the remaining participants, forming the control group, received only $50.
Findings from the study indicated that those receiving the larger payments had greater freedom to pursue jobs that better suited their preferences. The authors stated, “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 expressed how the cash transfers allowed them to build savings, stating, “I’m in a position for once to be picky. 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 noted that this financial support enabled them to accept a lower-paid entry-level position in their desired field, leading to a six-figure salary within two years, a feat they claimed would not have been possible without the cash transfers.
However, the study revealed no significant difference in employment rates when comparing those who received larger amounts to the control group. Recipients primarily used the funds to cover basic necessities, such as food, housing, and transportation, and to address health-related expenses like braces and alcoholism treatment. Although initial reductions in stress were observed, many of the health benefits diminished after two years.
Altman is a strong advocate for universal basic income as the rise of artificial intelligence is transforming the job market and displacing certain roles.
Correction: An earlier version incorrectly attributed the study’s conduct to OpenAI. It was actually Sam Altman’s nonprofit OpenResearch that facilitated the study.