Sam Altman, the CEO of OpenAI, has financed the largest basic income experiment in the United States to date through his nonprofit organization, OpenResearch. This study involved providing unconditional cash payments to individuals living below the poverty line over a three-year period.
Around 3,000 participants, aged between 21 and 40 from Texas and Illinois with annual incomes below $30,000, took part in the research. One-third of these individuals received $1,000 each month, while the remaining participants, who served as a control group, received only $50 monthly.
Findings from the study indicated that those who received the higher cash payments enjoyed greater flexibility in seeking employment that matched their preferences. The authors of the study noted that “cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” Participants were more likely to search for jobs but tended to be more selective in their choices.
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,” adding that they didn’t feel pressured to accept less desirable job offers due to immediate financial needs. Another recipient noted that they had accepted a lower-paying entry-level position in a desired field, which ultimately led them to earn a six-figure salary within two years, asserting, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
However, the study revealed no significant differences in employment levels between the higher payment recipients and the control group. The cash transfers primarily led to increased spending on essential needs, such as food, housing, and transportation. Additionally, the financial support helped some participants address health-related expenses, including braces and addiction treatment. While the payments initially alleviated stress, many of these health benefits diminished after two years.
Altman has been an advocate for universal basic income, particularly as advancements in artificial intelligence continue to transform the job market and displace certain occupations.
A correction has been made regarding the organization responsible for the study, clarifying that it was Sam Altman’s nonprofit OpenResearch, rather than OpenAI.