Sam Altman, the CEO of OpenAI, has financed the most extensive basic income study conducted in the United States. 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 involved around 3,000 participants aged 21 to 40 from Texas and Illinois, all earning under $30,000 annually. One-third of these individuals received $1,000 monthly, while the remaining participants, who formed a control group, received just $50.
Results from the study revealed that those receiving the larger payments experienced greater freedom in seeking employment opportunities that genuinely appealed to them.
According to the researchers, “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.”
In an interview, one study participant expressed that the cash transfer allowed them to save, stating, “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. I have the opportunity to hold out and try and find the right fit.”
Another participant mentioned taking a lower-paying entry-level job in a desired field, which eventually led to a six-figure salary within two years. They acknowledged that without cash transfers, accepting that initial pay cut would have been impossible.
The findings indicated no significant difference in employment levels between those receiving the larger payments and the control group. Recipients primarily utilized the funds for essential needs, such as food, housing, and transportation. The payments also assisted in covering health-related expenses, including braces and treatment for alcoholism. Although the initial stress reduction was notable, many health benefits diminished after a two-year period.
Sam Altman has championed the concept of universal basic income, especially in light of how artificial intelligence is transforming the job market and displacing certain jobs.
Note: An earlier version of this article incorrectly identified the organization conducting the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.