Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line over a period of three years.
Approximately 3,000 participants aged 21 to 40 from Texas and Illinois, each earning less than $30,000 annually, took part in the study. One-third of these participants received $1,000 each month, while the control group received $50.
The findings indicated that individuals receiving the larger payments had greater flexibility in seeking jobs that aligned with their personal preferences. The study’s authors 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.”
One study 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,” explaining that they could afford to wait for a suitable job rather than taking any position out of immediate financial necessity. Another recipient highlighted how the financial support allowed them to accept a lower-paying entry-level job in their desired field, eventually leading to a six-figure salary within two years. “If I didn’t have the cash transfers, there is no way I could have taken that pay cut,” they stated.
The research did not reveal significant differences in employment rates between the recipients and the control group. Recipients primarily increased spending on essential needs such as food, housing, and transportation. The funds also helped cover health expenses like braces and alcoholism treatment. While the cash payments initially alleviated stress, many of the health benefits diminished after two years.
Sam Altman advocates for universal basic income, especially as artificial intelligence continues to transform the labor market and displace certain jobs.
Note: An earlier version of this article inaccurately identified the organization conducting the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.