Sam Altman, the CEO of OpenAI, has funded the largest basic income study conducted 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 three-year period.
The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of the participants received $1,000 per month, while the remaining participants, serving as the control group, received $50.
Findings from the study indicated that those receiving the larger payments experienced greater flexibility in seeking employment that aligned with their preferences. The researchers 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, “Thanks to the cash transfer and the ability to build up my savings, I’m finally in a position to be picky.” They emphasized not feeling pressured to accept unsatisfactory job offers due to the financial support, saying, “I have the opportunity to hold out and try and find the right fit.”
Another recipient mentioned that the financial assistance allowed them to accept a lower-paying entry-level position in a desired field, leading to a six-figure salary within two years. They articulated that without the cash transfers, taking a pay cut would have been unfeasible.
The study did not reveal significant differences in employment levels between those receiving higher payments and the control group. Recipients primarily increased their spending on essential needs, such as food, housing, and transportation. The payments also assisted in addressing health-related expenses, including braces and treatment for alcoholism. While the initial cash support reduced stress, many of the associated health benefits diminished after two years.
Sam Altman has been an advocate for universal basic income as artificial intelligence continues to reshape the labor market, potentially displacing certain jobs.
Note: An earlier version of this article incorrectly attributed the organization conducting the study. It was Sam Altman’s nonprofit OpenResearch, not OpenAI.