Sam Altman, CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. The study focused on individuals living below the poverty line, providing them with unconditional cash payments over a three-year period.
The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. Of these participants, a third received $1,000 monthly, while the rest, serving as the control group, received only $50.
Findings indicated that those receiving the larger payments had greater flexibility to pursue jobs that better matched their preferences. The study’s authors stated, “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 noted the positive impact of the cash transfers on their employment prospects, saying, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky. I don’t have to take a crappy job just because I need income right now.” Another recipient shared their experience of accepting a lower-paying entry-level job in a desired field, which eventually led to a six-figure salary within two years, emphasizing that without the cash support, they could not have afforded to take that initial pay cut.
However, the study revealed no significant difference in overall employment rates between the recipients of the larger payments and the control group. The additional funds primarily allowed recipients to cover essential expenses, including food, housing, and transportation, and even supported some with healthcare needs such as braces and treatment for alcoholism. While the payments initially reduced stress levels, many health benefits experienced by the recipients faded after two years.
Sam Altman has advocated for universal basic income as a response to the changes in the labor market driven by advancements in artificial intelligence, which are expected to lead to job displacement. The report also included a correction, clarifying that the study was conducted by Sam Altman’s nonprofit OpenResearch, not OpenAI.