Sam Altman, the CEO of OpenAI, has initiated the largest basic income experiment in the United States through his nonprofit, OpenResearch. This study aims to provide unconditional cash payments to individuals living below the poverty line for three years.
The research involved around 3,000 participants aged between 21 and 40 from Texas and Illinois, all earning less than $30,000 annually. One third of the participants received $1,000 a month, referred to as the recipients, while the remaining participants, forming the control group, were given only $50.
The findings indicated that those receiving the higher payments gained more freedom to seek jobs that were better aligned with their interests 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 how the cash transfers allowed them to save money and be choosier 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 shared their experience of accepting a lower-paying entry-level job in a desired field, which eventually led to a six-figure salary within two years, crediting the cash transfers for making that pay cut feasible.
Despite the positive impacts on personal choices, the study found no significant difference in employment rates between the larger payment recipients and the control group. Most of the additional funds were allocated to essential needs such as food, housing, and transportation, as well as health-related expenses like dental braces and treatment for addiction. While the cash injections initially alleviated stress, many of the health benefits seemed to diminish after two years.
Altman has championed the concept of universal basic income, especially as advancements in artificial intelligence continue to alter the labor market and disrupt certain job sectors.