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 study aims to provide individuals living below the poverty line with unconditional cash payments for a duration of three years.
Approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually, were involved in the study. One-third of these individuals received $1,000 per month, while the remaining participants, known as the control group, received only $50.
The findings revealed that those receiving the larger monthly payments had more freedom to pursue employment opportunities that aligned with their personal preferences. The authors of the study observed, “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, “Because of the cash transfer and being able to build up my savings, I’m in a position for once to be picky,” emphasizing that they no longer felt compelled to accept undesirable jobs due to immediate financial needs. Another recipient mentioned that the cash transfers allowed them to accept a lower-paid entry-level position in their desired field, which ultimately led to a six-figure salary within two years, adding, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study noted that there were no significant differences in employment levels between those receiving the larger payments and the control group. However, those who received the payments tended to increase spending on essential needs such as food, housing, and transportation. Additionally, the funds assisted recipients in covering health-related expenses, including treatments for conditions like alcoholism. While the payments initially alleviated stress, many of the health benefits diminished after two years.
Sam Altman has advocated for universal basic income, especially as advancements in AI continue to transform the job market and potentially displace workers.
Note: An earlier version of this article inaccurately identified the organization conducting the study as OpenAI instead of OpenResearch.