Sam Altman, the CEO of OpenAI, has financed 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 included approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of these participants received $1,000 per month, while the remaining participants, who served as the control group, received only $50.
The findings indicated that those receiving the larger payments had more freedom to pursue jobs that aligned with their personal 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 shared that thanks to the cash transfer, they could accumulate savings and, for the first time, be selective with job opportunities. “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 expressed that the cash transfers enabled them to accept a lower-paying entry-level position in a desired field, ultimately leading to a six-figure salary within two years. They noted, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study reported no significant difference in employment rates between recipients of larger payments and the control group. Recipients increased their spending primarily on basic necessities, including food, housing, and transportation. The payments also assisted them in covering health-related expenses like braces and alcohol treatment. While the payments initially alleviated stress, the health benefits reportedly diminished after two years.
Sam Altman has been a strong advocate for universal basic income in light of the evolving labor market influenced by artificial intelligence, which is expected to displace certain jobs.
Correction: An earlier version of this story incorrectly identified the organization conducting the study. It was Sam Altman’s nonprofit OpenResearch, not OpenAI.