Sam Altman, CEO of OpenAI, has financed the largest basic income study in the United States to date. Through his nonprofit organization, OpenResearch, he collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for a period of three years.
The study included approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. A third of these participants received monthly payments of $1,000 (the recipients), while the remaining participants (the control group) were given $50.
According to the findings, those who received the larger payments experienced greater flexibility in pursuing jobs 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 their experience, stating, “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 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 mentioned that they took a lower-paying entry-level position in a desired field and, within two years, achieved a six-figure salary. “If I didn’t have the cash transfers, there is no way I could have taken that pay cut,” they explained in an interview.
The study concluded that there was no significant difference in employment levels between recipients of the larger payments and the control group. Recipients primarily increased their spending on essential needs, including food, housing, and transportation. The payments also assisted recipients in affording health necessities such as braces and treatment for alcoholism. Although the payments initially alleviated stress, many significant health benefits diminished after two years.
Sam Altman advocates for the concept of universal basic income, especially as artificial intelligence continues to transform the labor market and displace certain jobs.