Sam Altman, CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit, OpenResearch. The initiative involved researchers providing unconditional cash payments to individuals living below the poverty line over a three-year period.
Approximately 3,000 participants, aged 21 to 40 from Texas and Illinois, took part in the study, all of whom earned less than $30,000 annually. A third of the participants received $1,000 per month, while the remaining individuals were part of a control group that received $50.
The research indicated that those receiving larger cash amounts had greater freedom to pursue jobs that aligned with their preferences. The authors of the study highlighted that cash assistance could enhance individuals’ ability to make employment choices that suit their unique circumstances, aspirations, and values. While the recipients showed a higher likelihood of job searching, they were more selective in their choices.
One participant noted that thanks to the cash transfers and the chance to build savings, they could afford to be pickier with job opportunities. They expressed relief in not needing to accept undesirable employment due to immediate financial pressure. Another recipient shared that they accepted a lower-paying entry-level position in a desired field, ultimately leading to a six-figure salary two years later, a move they asserted would not have been possible without the cash support.
The study revealed no significant differences in employment rates between recipients of the higher payments and the control group. However, recipients reported increased expenditures on fundamental needs, such as food, housing, and transportation. The payments also assisted in covering health-related expenses, including braces and treatment for alcoholism. While the cash transfers initially alleviated stress, many of the associated health benefits diminished after two years.
Sam Altman advocates for universal basic income in light of how artificial intelligence impacts the labor market and displaces certain jobs.
An earlier version of this article incorrectly attributed the organization conducting the study to OpenAI; it was, in fact, OpenResearch.