Sam Altman, the CEO of OpenAI, has financially backed the largest universal basic income study conducted in the United States to date. Through his nonprofit organization, OpenResearch, Altman collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study involved approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom were earning less than $30,000 annually. One-third of the participants received $1,000 per month, while the remaining cohort, serving as the control group, were given only $50 monthly.
Findings from the study indicated that those receiving the larger payments had greater freedom to seek employment that aligned with their preferences and aspirations.
“Cash can increase people’s agency to make employment decisions that match their individual circumstances, goals, and values. Recipients were more likely to be actively searching for jobs, but they were also more discerning in their choices,” the authors of the study noted.
One participant shared, “Thanks to the cash transfer and the ability to save, I can finally afford to be selective about job offers. I’m not forced to accept a low-quality job just to make ends meet. I can wait and find the right opportunity.”
Another recipient explained that the payments allowed them to accept a lower-paying entry-level job in their desired field, which ultimately led to a six-figure salary within two years. “Without the cash transfers, there is no way I could have taken that pay cut,” they stated.
The study did not reveal any significant differences in employment rates between the group receiving larger payments and the control group. Instead, recipients primarily increased spending on essential needs, including food, housing, and transportation. The payments also assisted recipients in covering healthcare expenses, such as orthodontics and treatment for alcoholism. Although the initial cash assistance alleviated stress, many of the health benefits diminished after two years.
Sam Altman has been an advocate for universal basic income as artificial intelligence continues to transform the labor market and displace certain jobs.
Correction: An earlier version of this article incorrectly identified the group that conducted the study. It was Sam Altman’s nonprofit OpenResearch, not OpenAI.