Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States through his nonprofit, OpenResearch. This study aimed to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
Approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning under $30,000 annually, took part in this research. One-third of these participants received $1,000 per month, while the remaining participants, serving as the control group, received only $50.
The findings indicated that individuals receiving the larger payments had greater flexibility in seeking jobs that suited their preferences and goals. 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 shared their experience, stating that the cash transfers allowed them to save money and be choosier about job opportunities, saying, “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 spoke about accepting a lower-paying entry-level role in a desired field, which eventually led to a six-figure salary, attributing their ability to take that chance to the cash transfers.
The study revealed no significant differences in employment rates between the recipients and the control group. Those receiving larger payments primarily increased their spending on essential needs, such as food, housing, and transportation. The payments also supported health-related expenses like braces and addiction treatment. While the initial financial assistance reduced stress for recipients, many of the health benefits diminished after two years.
Altman has advocated for universal basic income as the impact of artificial intelligence continues to alter the job market and displace certain employment opportunities.
A correction to the report clarifies that OpenResearch, not OpenAI, was responsible for conducting the study.