Sam Altman, CEO of OpenAI, has funded the largest basic income study conducted 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 approximately 3,000 participants aged 21 to 40 in Texas and Illinois, all of whom earned less than $30,000 annually. One-third of the participants received $1,000 per month, while the remainder, serving as a control group, received $50.
The findings indicated that those receiving the greater payments had increased flexibility in seeking jobs that matched their interests. 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 expressed, “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 were not forced to accept an unsatisfactory job due to immediate financial needs. Another recipient shared their experience of taking a lower-paying entry-level position in a desired field, which eventually led them to a six-figure salary within two years. They remarked, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The research revealed no significant disparity in employment rates between those who received the higher payments and the control group. Recipients primarily increased their spending on essential needs, particularly food, housing, and transportation. The payments also permitted individuals to address health-related expenses, such as dental braces and alcoholism treatment. While the cash transfers initially alleviated stress, many of the health benefits diminished after two years.
Altman has been an advocate for universal basic income as a response to the evolving labor landscape influenced by artificial intelligence, which is expected to eliminate certain job positions.
Note: A previous version of this report inaccurately identified the group that conducted the study, which was Sam Altman’s nonprofit OpenResearch, not OpenAI.