Sam Altman, the CEO of OpenAI, has financed 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 over a period of three years.
The study involved approximately 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 each month, categorized as recipients, while the remaining participants, serving as the control group, were given $50 monthly.
Findings from the study indicated that those receiving the larger cash amounts experienced enhanced flexibility in job searching, allowing them to pursue positions that aligned better with their preferences.
The researchers 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.”
In interviews, one participant shared their experience stating, “Because of the cash transfer and being able to build up my savings, I’m in a position for once to be picky. 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.” Another recipient mentioned that they were able to accept a lower-paying entry-level position in their desired field, which eventually led to a six-figure salary in two years. They remarked, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study revealed no significant difference in employment rates between the larger payment recipients and the control group. Recipients primarily increased their spending on essential needs, with food, housing, and transportation as the main categories. The additional payments also assisted recipients in meeting health-related expenses, such as braces and treatment for alcoholism. While the cash transfers initially alleviated stress, many of the health benefits diminished after two years.
Sam Altman advocates for universal basic income, especially as advancements in artificial intelligence reshape the labor landscape and displace certain jobs.
Correction: An earlier version of this story inaccurately identified the organization conducting the study as OpenAI; it was Sam Altman’s nonprofit OpenResearch.