Sam Altman, the CEO of OpenAI, has financed the largest basic income study ever conducted in the United States. Through his nonprofit organization, OpenResearch, the initiative provided unconditional cash payments to individuals living below the poverty line for a period of three years.
The study included around 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of these participants received $1,000 each month, while the rest, categorized as the control group, received $50 per month.
Findings from the study indicated that those who received the larger payments had greater freedom to seek employment tailored to their preferences and aspirations. The authors of the study stated, “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 their experience, stating, “Thanks to the cash transfer and building up my savings, for once I can be picky. I don’t have to accept a low-quality job just for immediate income. Now I can wait for the right opportunity.” Another recipient mentioned that they accepted a lower-paying entry-level position in a desired field, which eventually led to a six-figure salary within two years, noting, “Without the cash transfers, I would not have been able to take that pay cut.”
The study did not reveal significant differences in employment levels between recipients of the larger payments and the control group. However, it was noted that recipients predominantly increased their expenditure on essential needs, with food, housing, and transportation being the primary categories. The payments also assisted in addressing health expenses, including orthodontics and addiction treatment. Although the initial reductions in stress were beneficial, many of the health advantages diminished after two years.
Sam Altman has been an outspoken advocate for universal basic income as automation and artificial intelligence transform the labor market and eliminate certain job opportunities.
Correction: An earlier version of this article incorrectly identified the organization conducting the study as OpenAI; it was actually Sam Altman’s nonprofit, OpenResearch.