Sam Altman, the CEO of OpenAI, has funded the largest universal basic income study conducted in the United States. 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 approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of these participants received $1,000 each month, while the remaining participants, who served as the control group, received $50.
Findings from the study indicated that recipients of the larger payments had greater flexibility in seeking employment that suited their preferences. 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 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. 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 allowed them to accept a lower-paying position in a desired field, leading to a six-figure salary within two years. They remarked, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study did not observe significant differences in employment rates between recipients of the larger payments and the control group. Recipients primarily increased their spending on basic needs, including food, housing, and transportation. Additionally, the payments helped address health-related expenses, such as braces and addiction treatment. While the financial support initially alleviated stress, many of the associated health benefits diminished after two years.
Sam Altman has been an advocate for universal basic income, particularly as AI technologies transform the labor market and potentially displace jobs.
Correction: An earlier version of this article incorrectly identified the organization conducting the study as OpenAI; it was Sam Altman’s nonprofit, OpenResearch.