Sam Altman, the CEO of OpenAI, has backed the largest basic income study 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 duration of three years.
The study involved around 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of the participants received $1,000 each month, while the remaining individuals in the control group received only $50.
Results indicated that those who received the larger payments had greater flexibility in seeking jobs that aligned with their preferences and aspirations. The authors of the study noted, “Cash can increase people’s agency to make employment decisions that suit their individual circumstances, goals, and values. Recipients were more likely to be looking for a job but were also more discerning.”
One study participant remarked, “Thanks to the cash transfer, I can finally be selective,” saying, “I don’t have to settle for a subpar job just to secure an income right now. I have the chance to hold out for the right opportunity.”
Another recipient shared that they had the ability to accept a lower-paying entry-level job in their desired field. Within two years, they reached a salary in the six-figure range, stating, “Without the cash transfers, I would never have been able to take that pay cut.”
The study, however, found no significant difference in employment levels between the larger payment recipients and the control group. The recipients primarily increased spending on essential needs such as food, housing, and transportation. The payments also assisted recipients in addressing health issues, including essential treatments. While the initial cash injections alleviated stress, many of the health benefits diminished after two years.
Altman has been a strong advocate for universal basic income, particularly as artificial intelligence continues to transform the job market and displace certain jobs.
Correction: An earlier version of this article incorrectly identified the organization overseeing the study. It was Sam Altman’s nonprofit OpenResearch, not OpenAI.