Sam Altman, CEO of OpenAI, has financed the largest basic income experiment 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 three years.
The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of the participants received monthly payments of $1,000, while the rest, serving as a control group, received $50.
The findings indicated that those receiving the larger payments had more freedom to pursue desired job opportunities. The study’s authors explained that cash can enhance individuals’ ability to make employment decisions that align with their specific situations, goals, and values. Although recipients were more likely to be job searching, they were also more selective in their choices.
In one interview, a study participant remarked, “Due to the cash transfer and my ability to save, I can finally afford to be picky,” noting that they no longer felt compelled to accept unsatisfactory jobs out of financial necessity. They expressed appreciation for the chance to find a better fit.
Another recipient shared that they took a lower-paying entry-level job in their desired field and, within two years, earned a six-figure salary. “Without the cash transfers, I wouldn’t have been able to take that pay cut,” they stated.
The study revealed no significant differences in employment rates between the recipients of the larger payments and the control group. Recipients primarily used the funds to cover essential expenses, with food, housing, and transportation being the most significant costs. The payments also enabled recipients to address health issues like braces and alcoholism treatment. Although the cash initially alleviated stress, many of the health benefits diminished after two years.
Altman has advocated for universal basic income as artificial intelligence continues to transform the labor market and displace certain jobs.
Correction: An earlier version of this article inaccurately identified the organization conducting the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.