Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date. This initiative, led by his nonprofit organization OpenResearch, aimed to provide unconditional cash payments to individuals living below the poverty line for a period of three years.
The study involved approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of these participants received monthly payments of $1,000, while the remainder served as a control group, receiving only $50 per month.
The findings indicated that those receiving the larger payments had greater flexibility in job searching, allowing them to pursue positions that better matched their preferences. The study’s 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.”
One participant highlighted how the cash transfer enabled them to build savings, allowing them to be more discerning in their job choices. “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,” they explained.
Another recipient shared their experience of being able to accept a lower-paying entry-level job in their desired field, which ultimately led to a six-figure salary within two years. “If I didn’t have the cash transfers, there is no way I could have taken that pay cut,” they stated.
The study’s results showed no significant difference in overall employment rates between the recipients and the control group, with recipients primarily using the funds to cover basic necessities. Key areas of spending included food, housing, and transportation. The financial support also helped recipients address health-related expenses, such as braces and alcohol addiction treatment. However, while the payments initially reduced stress levels, many of the associated health benefits diminished after two years.
Sam Altman advocates for universal basic income, particularly as advancements in artificial intelligence disrupt the labor market and eliminate certain jobs.
Correction: An earlier version inaccurately identified the organization responsible for conducting the study, which was actually Sam Altman’s nonprofit, OpenResearch, rather than OpenAI.