Sam Altman, the CEO of OpenAI, has funded the largest basic income study 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.
Approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually, took part in the study. One-third of these individuals received $1,000 per month, while the remaining participants, serving as a control group, received $50.
The findings revealed that those receiving the larger payments enjoyed greater flexibility in their job searches, allowing them to pursue employment opportunities that better suited their personal goals and values. According to the study’s authors, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances.” Recipients demonstrated a higher likelihood of searching for jobs but were also more selective in their choices.
One study participant explained how the cash transfers allowed them to build savings and be selective in their job search, 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 noted they were able to accept a lower-paying entry-level position in their desired field, which ultimately led to a six-figure salary within two years, attributing this opportunity to the cash transfers.
The study did not find significant differences in employment levels between the larger payment recipients and the control group. Recipients mainly increased spending on basic necessities, such as food, housing, and transportation. The payments also contributed to covering health-related costs, including braces and treatment for alcoholism. While initial stress levels lowered due to the payments, many of the health benefits diminished over a two-year period.
Altman supports the concept of universal basic income, especially in light of artificial intelligence’s potential to disrupt the job market and eliminate certain positions.
In an update, it was clarified that the study was conducted by OpenResearch, not OpenAI.