Sam Altman, the CEO of OpenAI, has financed the most extensive basic income experiment ever conducted in the United States. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments for three years to individuals living below the poverty line.
The study involved 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of these participants received $1,000 per month, while the remaining participants, serving as the control group, were given just $50.
Findings from the research indicated that those receiving the larger payments had enhanced flexibility in job-seeking, allowing them to pursue employment opportunities that better matched their personal aspirations and values. The study’s authors noted that cash assistance empowered recipients to make more deliberate employment choices.
One participant expressed that the cash transfers enabled them to save money, making it possible to choose jobs that suited their career goals rather than settling for immediate, less desirable work. Another recipient shared their experience of accepting a lower-paying entry-level position in a field of interest, which ultimately led to a six-figure salary within two years, a choice they felt would have been impossible without the cash support.
Despite the insights regarding job flexibility, the study did not reveal significant differences in overall employment rates between the cash recipients and the control group. The extra income primarily resulted in increased spending on essential needs, with notable expenditures on food, housing, and transportation. The payments also contributed to health-related expenses, such as braces and treatment for addiction. However, after two years, many of the initial health benefits linked to the payments diminished.
Altman has been a strong advocate for universal basic income, particularly in light of advancements in artificial intelligence, which have the potential to disrupt the job market.
Note: A previous version of this article incorrectly attributed the study to OpenAI when it was actually conducted by Sam Altman’s nonprofit organization, OpenResearch.