Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the U.S. to date. Through his nonprofit organization, OpenResearch, he collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study included around 3,000 participants between the ages of 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. A third of these individuals received $1,000 per month, while the rest, serving as a control group, received $50.
Results revealed that recipients of the larger cash payments enjoyed greater flexibility in pursuing 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 more likely to be searching for a job, but they were more selective.”
In an interview, one participant remarked, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky,” stating further, “I don’t have to take a low-quality job just because I need income right now. I can wait and find the right fit.”
Another participant shared that they had taken a lower-paying entry-level position in a desired field and, within two years, reached a six-figure salary. “If I didn’t have the cash transfers, there is no way I could have taken that pay cut,” they explained.
The study found no significant differences in employment levels between recipients of the larger payments and those in the control group. However, recipients reported increased spending on essential needs, with food, housing, and transportation being the main categories. Payments also enabled them to address health-related expenses, such as braces and treatment for alcoholism. While the financial assistance initially alleviated stress, many of the health benefits diminished after two years.
Sam Altman advocates for universal basic income amid the transformations in the labor market brought about by advances in artificial intelligence, which may lead to job losses in certain sectors.
Note: An earlier version of this article incorrectly identified the organization that conducted the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.