Sam Altman, CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit, OpenResearch. The study aimed to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
The research involved approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, each earning less than $30,000 annually. One-third of the participants received $1,000 per month, while the remaining individuals, serving as a control group, were given $50.
Findings from the study indicated that those receiving the larger payments had greater flexibility in seeking jobs 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.”
One participant remarked that the cash transfers allowed them to build savings, enabling them to be more discerning in their job search. They explained, “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 shared that they opted for a lower-paid entry-level position in their desired field and, within two years, achieved a six-figure salary. They stated, “If I didn’t have the cash transfers, there’s no way I could have taken that pay cut.”
The study did not reveal significant differences in employment rates between the recipients of larger payments and the control group. However, it noted that recipients tended to spend more on basic necessities such as food, housing, and transportation. Additionally, the payments assisted with health needs, including braces and treatments for alcoholism. While the initial cash assistance helped alleviate stress, many of the associated health benefits diminished after two years.
Sam Altman has been an advocate for universal basic income, especially as artificial intelligence continues to reshape the labor market and potentially displace jobs.
A correction was made to clarify that the study was conducted by Sam Altman’s nonprofit OpenResearch, not OpenAI.