Sam Altman, CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit, OpenResearch. The study aimed to provide unconditional cash payments to individuals living below the poverty line for a period of three years.
The research involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom had annual incomes below $30,000. One-third of the participants received $1,000 each month (the recipients), while the remaining participants (the control group) received only $50.
Results from the study indicated that those receiving the larger payments had greater flexibility in choosing employment that suited their preferences. According to the study’s authors, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” The recipients were more active in their job search but exhibited greater selectivity in the positions they pursued.
One participant remarked, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky,” emphasizing the ability to hold out for a suitable job rather than settling for inadequate options. Another recipient shared how the cash transfers enabled them to accept a lower-paying entry-level role in their desired field, which ultimately led to a six-figure salary within two years. They stated, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”
The study revealed no significant differences in employment levels between those who received the larger payments and the control group. Recipients mainly increased their spending on basic necessities, with food, housing, and transportation being the largest expenses. The payments also assisted recipients in managing health-related costs, such as braces and treatment for alcoholism. While the cash transfers initially alleviated stress, many of the observed health benefits diminished after two years.
Altman has been an advocate for universal basic income, especially in light of the transformations in the labor market brought about by advancements in artificial intelligence.
Correction: An earlier version of this article incorrectly stated that OpenAI conducted the study; it was actually Sam Altman’s nonprofit OpenResearch.