Revolutionizing Income: Can Cash Transfers Redefine Job Selections?

Sam Altman, the CEO of OpenAI, has financed the largest basic income experiment in the United States. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for a period of three years.

A new study indicates that the pill form of Novo Nordisk’s drug, Ozempic, may significantly lower the risk of heart attacks and strokes. The research involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned under $30,000 annually. One-third of the participants received $1,000 each month, while the remaining participants, serving as a control group, were given only $50.

The results revealed that those receiving the larger monthly payments found themselves with more flexibility in their job searches, allowing them to pursue positions that better matched their preferences and aspirations. 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 their newfound ability to be selective in their job choices due to the cash transfers, stating, “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 the financial support allowed them to accept a lower-paying position in a field they were passionate about, which eventually led to a six-figure salary within two years. They stated, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”

The study did not show any significant difference in overall employment rates between the recipients of the larger payments and those in the control group. The additional income primarily went towards satisfying basic needs, including food, housing, and transportation. The payments also assisted recipients in addressing health-related expenses such as braces and alcoholism treatment. While the cash transfers initially alleviated stress, many of the health benefits diminished after two years.

Sam Altman has been an advocate for universal basic income, especially in light of how artificial intelligence is transforming the job landscape and displacing certain jobs.

A correction has been made to an earlier report, clarifying that the study was conducted by Sam Altman’s nonprofit, OpenResearch, rather than OpenAI.

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