Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States to date. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line over a three-year period.
The study involved 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of the participants received $1,000 per month, referred to as recipients, while the remaining participants, forming the control group, received $50.
Findings from the study indicated that those who received the larger cash payments had greater flexibility in seeking employment that suited 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 shared, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky,” adding, “I don’t have to take a lousy job just because I need income right now. I have the opportunity to hold out and try to find the right fit.” Another recipient explained that the cash allowed them to accept a lower-paying entry-level job in a desired field, which eventually led to a six-figure income in two years. “If I didn’t have the cash transfers there’s no way I could have taken that pay cut,” they stated in an interview.
The study reported no significant difference in employment rates between those who received the larger payments and those in the control group. Recipients primarily increased their spending on essential needs, with food, housing, and transportation being the largest expenses. The payments also helped recipients cover health-related costs, such as braces and treatment for alcoholism. While the payments initially alleviated stress, the long-term health benefits diminished after two years.
Sam Altman continues to advocate for universal basic income as automation and artificial intelligence significantly reshape the job market and displace certain jobs.
Correction: An earlier version of this article inaccurately identified the organization responsible for the study. It was Sam Altman’s nonprofit OpenResearch, not OpenAI.