Sam Altman, the CEO of OpenAI, has funded the largest basic income experiment in the United States through his nonprofit organization OpenResearch. This initiative partnered with researchers to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study involved 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of the participants received $1,000 each month, while the remaining participants, forming the control group, were given only $50.
Findings from the study indicated that recipients of the larger payments had greater flexibility in seeking employment that suited their preferences. The 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.”
In the study, one participant expressed a newfound ability to be discerning in job choices due to the cash transfers, stating, “I don’t have to take a crappy job just because I need income right now. I have the opportunity to hold out and try and find the right fit.” Another recipient recounted how they accepted a lower-paying entry-level position in a desired field, which ultimately led to a six-figure salary within two years. They remarked, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The analysis revealed no significant difference in employment levels between those receiving the larger payments and the control group, with recipients primarily increasing their spending on essential needs. Key expenditures included food, housing, and transportation, with some payments assisting with health expenses like braces and treatment for alcoholism. While the financial support initially alleviated stress, many of the associated health benefits diminished after two years.
Altman has been an advocate for universal basic income, particularly as artificial intelligence continues to transform the labor market and displace certain jobs.
Correction: An earlier version of this story incorrectly identified the organization conducting the study as OpenAI; it was, in fact, Sam Altman’s nonprofit OpenResearch.