Sam Altman, CEO of OpenAI, has financed the largest basic income experiment in the United States to date. Through his nonprofit organization, OpenResearch, the study provided unconditional cash payments to individuals living below the poverty line for a three-year period.
The research involved around 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom earned below $30,000 annually. One-third of these participants received monthly payments of $1,000, while the remaining participants, serving as the control group, received only $50.
The findings indicated that those receiving the larger payments experienced greater flexibility in their job searches, allowing them to pursue roles that better matched their interests.
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 remarked, “Because of the cash transfer and being able to build up my savings, I’m in a position for once to be picky,” adding, “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 shared their experience of accepting a lower-paid entry-level position in a desired field, which ultimately led to a six-figure salary in just 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 found no significant difference in employment rates between the participants receiving larger payments and those in the control group. Recipients primarily increased their spending on essential needs, such as food, housing, and transportation. The cash payments also enabled recipients to cover health-related expenses, including orthodontics and addiction treatment. Although the payments initially alleviated stress, many of the associated health benefits diminished after two years.
Sam Altman has been an advocate for universal basic income in light of the ongoing transformations in the job market due to advancements in artificial intelligence.
A correction clarified that the study was conducted by OpenResearch and not OpenAI, which was misstated in an earlier version of the article.