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 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 the participants received $1,000 per month, while the remaining participants, who served as the control group, received only $50.
Findings from the study revealed that those receiving the larger payments had greater flexibility to pursue jobs that aligned with their interests. 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, I’m finally in a position to be picky. I don’t have to take a subpar job just out of necessity. I can afford to wait for the right opportunity.” Another recipient mentioned that the cash allowed them to accept a lower-paying entry-level job in their desired field, ultimately leading to a six-figure salary within two years. They remarked, “Without the cash transfers, I could not have afforded to take that pay cut.”
The research indicated no significant difference in employment rates between those who received the larger payments and those in the control group. The recipients primarily increased their spending on basic needs such as food, housing, and transportation. The payments also assisted recipients in covering health-related expenses, including braces and alcoholism treatment. While the cash transfers initially alleviated stress, many of the health benefits diminished after two years.
Altman has been a strong advocate for universal basic income, particularly as artificial intelligence reshapes the labor market and displaces certain jobs.
Note: This version clarifies the group that conducted the study was Sam Altman’s nonprofit OpenResearch, not OpenAI, correcting an earlier error.