Sam Altman, the CEO of OpenAI, has financed the largest basic income study conducted 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 for a duration 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. One-third of these participants, referred to as recipients, received $1,000 per month, while the remaining participants, forming the control group, were given $50.
Findings from the study indicated that those receiving the larger payments experienced greater flexibility in seeking jobs that aligned with their preferences and aspirations. 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, explaining that the cash transfers allowed them to save money and be more discerning in their job search. “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,” they commented.
Another participant reported being able to accept a lower-paying entry-level position in their desired field, which ultimately led to them achieving a six-figure salary in two years. “If I didn’t have the cash transfers, there is no way I could have taken that pay cut,” they stated in an interview.
The study concluded that there was no significant difference in employment levels between those who received the larger amounts and the control group. Recipients generally increased their spending on basic necessities, with food, housing, and transportation being the primary expenses. The payments also enabled recipients to address health needs such as braces and addiction treatment. While the initial cash payments alleviated stress, many of the associated health benefits diminished after two years.
Sam Altman has been an advocate for universal basic income as artificial intelligence continues to transform the labor market and displace certain jobs.
Correction: An earlier version of this article incorrectly identified the organization conducting the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.