Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. This initiative aims to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study involved approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom had annual earnings of less than $30,000. One-third of these individuals received $1,000 each month, while the remaining participants, who formed a control group, were given only $50.
Results from the study revealed that those receiving the larger payments experienced greater flexibility in their job searches, focusing on positions that better matched their personal preferences 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 shared how the cash transfer allowed them to accumulate savings and be more discerning in their job choices. “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,” the participant explained.
Another recipient mentioned that the financial support enabled them to accept a lower-paying entry-level position in their desired field, which eventually led to a six-figure salary within two years. They expressed, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
However, the study found no significant difference in employment rates between the recipients of the larger payments and the control group. The primary use of the funds by recipients was for basic necessities, including food, housing, and transportation. Additionally, the payments assisted recipients in addressing health needs, such as dental braces and treatment for alcoholism. While the initial cash support reduced stress, the long-term health benefits appeared to diminish after two years.
Altman has been an advocate for universal basic income, particularly as artificial intelligence continues to transform the labor market and displace certain jobs.
Note: A previous version of this report incorrectly stated that the study was conducted by OpenAI; it was conducted by Altman’s nonprofit, OpenResearch.