Sam Altman, the CEO of OpenAI, has funded 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 over a three-year period.
The study involved approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One group received $1,000 each month, while the control group received $50.
According to the findings, those who received the larger payments had greater flexibility to pursue jobs that better matched their interests and aspirations.
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 highlighted the advantages of the cash transfer, stating, “Because of the [cash transfer] and being able to build up my savings, 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 they were able to accept a lower-paid entry-level job in their desired field, leading to a six-figure salary within two years. They credited the financial support with enabling them to take that pay cut.
The study revealed no significant differences in employment levels between those who received larger payments and the control group. Recipients primarily used the funds for essential expenses, including food, housing, and transportation. The payments also assisted them with health-related costs, such as braces and treatment for alcoholism. While the initial cash support reduced stress, many of the health benefits diminished after two years.
Sam Altman advocates for universal basic income, especially as artificial intelligence transforms the job market and displaces certain positions.
Note: An earlier version of this article incorrectly attributed the organization conducting the study; it was OpenResearch, not OpenAI.