Sam Altman, the CEO of OpenAI, has funded the most significant basic income study in the U.S. to date through his nonprofit organization, OpenResearch. The initiative involved researchers providing unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study included 3,000 participants aged between 21 and 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of these participants received $1,000 per month, while the remaining participants, forming the control group, were given $50.
Findings showed that those receiving the larger monthly payments could more freely pursue jobs that they genuinely desired. 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 job searching, but they exhibited greater selectiveness in their choices.
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 that they no longer had to accept unsatisfactory jobs just for immediate income. Another recipient shared that they were able to accept a lower-paying entry-level position in their desired field and achieved a six-figure salary within two years, stating, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”
The study indicated no significant difference in overall employment levels between those who received the larger sums and the control group. Recipients primarily increased their spending on essential needs such as food, housing, and transportation. The payments also helped cover health-related expenses, including braces and treatment for alcoholism. While the initial cash support alleviated stress, many of the health benefits diminished after two years.
Altman has advocated for universal basic income, especially as advancements in artificial intelligence continue to transform the labor market and displace certain jobs.
Note: An earlier version of this article incorrectly credited the conducting of the study to OpenAI instead of the correct organization, OpenResearch.