Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. This initiative provided unconditional cash payments to individuals living below the poverty line over a three-year period.
The study involved approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of the participants received $1,000 per month, while the remaining participants, who served as the control group, were given $50 per month.
Findings from the study indicated that those receiving the larger payments had greater flexibility in their job search, showing a willingness to pursue employment that better matched their personal goals and values. 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 remarked that the cash transfers allowed them to accumulate savings, enabling them to be choosy in their job applications. They noted, “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 recounted how the payments allowed them to take a lower-paying entry-level job in their desired field, which ultimately 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 reveal significant differences in employment rates between those who received the larger payments and the control group. Recipients primarily increased their spending on essential needs, with food, housing, and transportation being key expenditures. The payments also assisted recipients in meeting health-related expenses, such as braces and alcoholism treatment. While the cash transfers initially alleviated stress for recipients, many of the health benefits diminished after two years.
Sam Altman has been an advocate for universal basic income, especially as artificial intelligence continues to alter the labor market and potentially reduce job availability.
Note: An earlier version of this article mistakenly identified the organization conducting the study as OpenAI; it was, in fact, Sam Altman’s nonprofit OpenResearch.