Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. The initiative aims to provide unconditional cash payments to individuals living below the poverty line for a period 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 per month, while the remaining participants, who served as the control group, received only $50.
Results from the study indicated that those receiving the larger cash payments had greater flexibility in job searching, allowing them to pursue roles that better matched their preferences. According to the authors of the study, “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 shared their experience, stating that the cash transfers enabled them to accumulate savings, allowing them to be more discerning in their job choices. They remarked, “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 their ability to accept a lower-paying entry-level position in their desired field, which ultimately led to a six-figure salary after two years, stating, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study did not reveal significant differences in employment levels between those who received the larger payments and the control group. However, recipients reported increased spending primarily on essential needs such as food, housing, and transportation. Additionally, the cash payments assisted recipients in addressing health-related expenses, such as braces and treatment for alcoholism. While the payments initially alleviated stress, many health benefits diminished after two years.
Altman has been an advocate for universal basic income, particularly as advancements in artificial intelligence continue to transform the job market and displace some employment opportunities.
Correction: An earlier version of this article incorrectly identified the organization conducting the study as OpenAI; it was Sam Altman’s nonprofit OpenResearch.