Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. The initiative provided unconditional cash payments to individuals living below the poverty line for a span of three years.
The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. A third of these participants received monthly payments of $1,000, while the remaining participants, who formed the control group, received only $50 per month.
Findings from the study indicated that those receiving the larger payments experienced greater flexibility in seeking desired employment. The authors concluded that cash payments can enhance individuals’ ability to make employment choices that align with their personal circumstances and aspirations. Recipients tended to be more selective in their job search, reflecting their increased agency.
One participant noted that the cash transfers allowed them to accumulate savings, enabling them to be choosy about job opportunities instead of accepting any available position due to immediate financial needs. Another recipient shared that the support allowed them to take a lower-paying entry-level job in their desired field, which ultimately led to a six-figure salary within two years, a feat they couldn’t have achieved without the financial assistance.
Despite the positive outcomes regarding job selection, the study found no significant difference in employment rates between those receiving larger payments and the control group. Instead, recipients primarily used the funds to cover essential expenses such as food, housing, and transportation. The cash assistance also helped with healthcare needs, including dental work and treatment for substance abuse. While the payments initially alleviated stress, many of the associated health benefits diminished over a two-year period.
Altman has been a strong advocate for universal basic income, particularly in the context of ongoing changes within the labor market influenced by artificial intelligence, which may displace certain jobs.
It is worth noting that an earlier version of this article incorrectly stated the organization behind the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.