Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study involved around 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. Among them, one-third received $1,000 per month, while the remaining participants, who formed the control group, were given only $50.
Results from the study indicated that those receiving the larger checks had increased flexibility in pursuing jobs that aligned with their preferences. According to the authors, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” Recipients of the cash were not only more likely to look for employment but also tended to be choosier in their job searches.
One participant noted, “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 less desirable 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-paying entry-level position in a desired field, leading to a six-figure salary within two years. They mentioned, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”
Despite these positive outcomes, the study showed no significant difference in employment rates between those who received larger payments and the control group. Recipients primarily increased their spending on essential needs, with food, housing, and transportation being the largest expenses. The payments also allowed some recipients to address health issues, such as obtaining braces and treatment for alcoholism. However, while the initial payments reduced stress levels, many of the health benefits seemed to diminish after two years.
Sam Altman has been an advocate for universal basic income, particularly as advancements in AI impact the labor market and displace certain jobs.
Correction: A previous version of this article inaccurately attributed the conducting organization of the study to OpenAI; it was, in fact, Sam Altman’s nonprofit, OpenResearch.