Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit, OpenResearch. This initiative involved researchers providing unconditional cash payments to individuals living below the poverty line over a duration of three years.
The study included approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, all earning less than $30,000 annually. One group received $1,000 each month, while a control group received only $50.
Results indicated that individuals receiving the larger payments enjoyed greater flexibility in seeking employment aligned with their preferences. The authors of the study noted, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” They found that recipients were more active in job searching but were also more selective in their choices.
One participant shared, “Thanks to the cash transfer and the ability to save, I can finally be picky. I’m not forced to accept a low-paying job just for immediate income. I have the chance to wait for the right opportunity.”
Another recipient explained how the cash support enabled them to accept a lower-paying entry-level role in their desired field, subsequently leading to a six-figure salary within two years. “Without the cash transfers, I would never have been able to take that pay cut,” they stated.
The study did not reveal significant differences in employment rates between those receiving the higher payments and the control group. However, recipients primarily used the funds for essential expenses such as food, housing, and transportation. The payments also assisted with health-related expenses, including dental braces and treatment for alcoholism. Initially, the financial support reduced stress levels, but many of the health benefits did not last beyond two years.
Sam Altman advocates for universal basic income as a response to the evolving job market due to advancements in AI, which is reshaping the labor landscape and displacing certain jobs.
Correction: This story previously indicated that the study was conducted by OpenAI, when in fact it was Sam Altman’s nonprofit organization, OpenResearch.