Sam Altman, the CEO of OpenAI, has financed the largest unconditional basic income study in the United States to date. His nonprofit organization, OpenResearch, collaborated with researchers to provide 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 of whom earned less than $30,000 annually. One-third of the participants received $1,000 each month, while the remaining participants, serving as the control group, received $50.
Findings revealed that those receiving the larger monthly payments gained more latitude in choosing job opportunities that aligned with their personal goals and circumstances. 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 the financial support allowed them to save money and be choosy in job selection, stating, “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.” Another recipient mentioned that taking a lower-paying entry-level job in their desired field ultimately led to a six-figure salary within two years, a feat they attributed to the cash transfers, saying, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”
The study did not show a significant difference in overall employment rates between the recipients and those in the control group. The financial assistance primarily led to an increase in spending on basic necessities, including food, housing, and transportation. It also helped recipients address health-related expenses such as braces and treatment for alcoholism. While initial stress levels decreased with the payments, many health improvements diminished after two years.
Altman has been an advocate for the concept of universal basic income, particularly as advancements in AI continue to transform the labor market and threaten job security for many.
A correction to the earlier report clarifies that the study was conducted by Sam Altman’s nonprofit organization OpenResearch, not OpenAI.