Sam Altman, CEO of OpenAI, has financed the largest basic income study ever conducted in the U.S. through his nonprofit organization, OpenResearch. This initiative aimed to provide unconditional cash payments to individuals living below the poverty line over a three-year period.
The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned under $30,000 annually. A third of the participants received $1,000 per month, while the remaining participants, who served as a control group, received only $50.
The findings revealed that those who received the larger payments experienced greater flexibility in job selection, allowing them to pursue employment that aligned more closely with their personal 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 shared, “Thanks to the cash transfer and being able to save, I’m finally in a position to be picky. I don’t have to take a subpar job just because I need income immediately; I can afford to wait for the right opportunity.” Another recipient highlighted how the cash assistance allowed them to accept a lower-paying entry-level job in their desired field, ultimately leading to a six-figure salary within two years, stating, “Without the cash transfers, I would never have been able to take that pay cut.”
The research found no significant difference in overall employment levels between those receiving the larger payments and the control group. The recipients tended to increase their spending mainly on essential needs such as food, housing, and transportation. Additionally, the payments facilitated access to healthcare needs, including braces and treatment for alcoholism. Although the initial financial support alleviated stress, many health benefits appeared to diminish over two years.
Altman has been an advocate for universal basic income, particularly in light of how artificial intelligence is transforming the job market and displacing certain roles.
Note: An earlier version of this article incorrectly identified the organization that conducted the study as OpenAI; it was actually Sam Altman’s nonprofit, OpenResearch.