Sam Altman, the CEO of OpenAI, has initiated the largest basic income study in the United States to date, funded through his nonprofit organization, OpenResearch. The study provided unconditional cash payments to individuals living below the poverty line for a duration of three years.
The research involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of the participants received $1,000 per month, classified as recipients, while the remaining participants, forming the control group, received $50.
Findings from the study indicated that those who received the larger monthly payments experienced greater flexibility in seeking job opportunities that 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.” Recipients were found to actively search for jobs but were more discerning in their choices.
One participant shared, “Because of the cash transfer and being able to build up my savings, I’m in a position for once to be picky.” They expressed relief at not having to settle for unsatisfactory jobs solely out of financial necessity. Another recipient mentioned they accepted a lower-paying entry-level position in their desired field, which later led to a six-figure salary within two years. They attributed their ability to take the pay cut to the cash transfers, stating, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”
The study revealed no significant differences in employment rates between those receiving larger payments and the control group. Instead, recipients primarily used the payments for essential needs such as food, housing, and transportation. The financial support also enabled them to address health issues like braces and alcohol treatment. Although the payments initially alleviated stress, many of the associated health benefits diminished after two years.
Sam Altman advocates for universal basic income amid the ongoing transformation in the labor market due to artificial intelligence, which is displacing certain jobs.
Correction: An earlier version of this article incorrectly identified the conducting organization as OpenAI; the correct name is Sam Altman’s nonprofit, OpenResearch.