Sam Altman, the CEO of OpenAI, has financed the largest basic income experiment in the United States through his nonprofit organization, OpenResearch. The study involved providing unconditional cash payments to individuals living below the poverty line over a span of three years.
The research included about 3,000 participants aged between 21 and 40 from Texas and Illinois, each earning less than $30,000 annually. One-third of these individuals received $1,000 monthly, while the rest, serving as the control group, were given $50.
Findings from the study indicated that those who received the larger payments felt more empowered to pursue job opportunities that matched their aspirations. The authors 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.”
A participant shared that the cash transfers allowed them to save enough to be choosy about job offers, 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 mentioned that the financial support enabled them to accept a lower-paid entry-level position in their desired field, which eventually led to a six-figure salary in just 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 larger payments and the control group. Recipients primarily increased their spending on essentials, with the largest expenses being food, housing, and transportation. The payments also assisted in addressing health needs, like braces and treatment for alcoholism. While the initial financial relief reduced stress, many of the health benefits waned after two years.
Altman has advocated for universal basic income, particularly as artificial intelligence continues to transform the labor market and displace certain jobs.
Note: This article has been corrected to reflect the accurate organization that conducted the study, which is Sam Altman’s OpenResearch, not OpenAI.