Sam Altman, the CEO of OpenAI, has financed the most extensive 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.
The study involved around 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. A third of these participants were awarded $1,000 per month, while the remaining participants acted as a control group receiving $50.
Results indicated that those receiving the larger payments had greater flexibility in seeking jobs that aligned with their preferences and aspirations.
According to the authors of the study, “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 shared their experience, stating, “Because of the cash transfer and being able to build up my savings, I’m in a position for once to be picky.” They emphasized not needing to accept unsatisfactory work just for immediate income: “I have the opportunity to hold out and try and find the right fit.”
Another recipient noted that the financial support allowed them to accept a lower-paying entry-level job in their desired field. This decision ultimately led to them achieving a six-figure salary within two years. “If I didn’t have the cash transfers there is no way I could have taken that pay cut,” they remarked.
While the study showed no significant disparity in employment rates between the recipients and the control group, recipients’ spending primarily increased on basic necessities such as food, housing, and transportation. Some used the funds for health-related expenses, including braces and treatment for alcoholism. Although the payments provided considerable stress relief initially, the health benefits appeared to diminish after two years.
Sam Altman has been an advocate for universal basic income, particularly in light of the changes in the job market caused by advancements in artificial intelligence.
A correction in the report clarified that the study was conducted by Sam Altman’s nonprofit OpenResearch, not OpenAI.