Sam Altman, the CEO of OpenAI, has made a significant investment in a groundbreaking basic income study in the United States through his nonprofit organization, OpenResearch. This study is recognized as the largest of its kind in the country, where participants living below the poverty line received unconditional cash payments over a span of three years.
Approximately 3,000 individuals aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually, participated in the program. A third of these participants received $1,000 per month, while the remaining individuals received $50 as a control group.
The results of the study revealed that those receiving the larger payments experienced enhanced flexibility in job searching. The researchers noted, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” The recipients exhibited a more proactive attitude towards job searching, opting for roles that closely matched their preferences rather than taking jobs solely for immediate income.
One participant shared their experience, stating that the cash transfer enabled them to build savings, allowing them to be selective in their job search. They expressed gratitude for the opportunity to pursue work that better fit their interests, rather than settling for unsatisfactory employment.
Additionally, another participant described how they leveraged the financial support to accept a lower-paying entry-level position in their desired field, which ultimately led them to a lucrative six-figure salary after just two years. They emphasized that without the cash transfers, they would not have been able to take that initial pay cut.
Despite these positive insights, the study found no significant difference in overall employment rates between those who received larger payments and those in the control group. Recipients primarily used the extra funds to cover essential needs such as food, housing, and transportation, with some even addressing health issues like dental braces and alcoholism treatment. While the cash flow initially alleviated stress, many of the health benefits diminished after two years.
This study aligns with Altman’s advocacy for universal basic income, particularly as the rise of artificial intelligence is reshaping the labor market and displacing certain jobs.
Overall, this initiative sheds light on the potential of basic income programs to empower individuals and foster greater job satisfaction, presenting a hopeful perspective on how financial support can enhance life choices and economic stability for those in need.