Sam Altman, the CEO of OpenAI, has sponsored the largest basic income experiment conducted in the United States to date. His nonprofit, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for a period of three years.
The study included around 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. A third of the participants received monthly payments of $1,000, while the remaining individuals, forming the control group, received $50.
Findings from the study indicated that those receiving the larger amounts of money experienced greater flexibility in pursuing employment that better 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.”
In an interview, one participant remarked, “Thanks to the cash transfer and my ability to build savings, I can finally be choosey. I don’t have to accept just any job for the sake of income. I can afford to wait for the right opportunity.” Another recipient shared their experience of taking a lower-paying entry-level position in a desired field, which eventually led to a six-figure salary within two years, stating, “Without the cash transfers, I wouldn’t have been able to take that pay cut.”
The study revealed no significant differences in employment rates between those receiving the larger payments and the control group. Recipients primarily used the funds for essential expenses, including food, housing, and transportation. They also utilized the payments for health-related needs, such as braces and treatment for alcoholism. Although the payments alleviated stress initially, many health advantages diminished after two years.
Sam Altman advocates for the notion of universal basic income, particularly as artificial intelligence continues to reshape the labor market and displace certain jobs.
It is important to note that an earlier version of this story inaccurately identified the organization conducting the study; it was Sam Altman’s nonprofit OpenResearch, rather than OpenAI.