Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date. Conducted by his nonprofit, OpenResearch, the study provided unconditional cash payments to individuals living below the poverty line for a period of three years.
Around 3,000 participants, aged 21 to 40 and residing in Texas and Illinois, who earned less than $30,000 annually, took part in the study. About one-third of the participants received $1,000 per month, while the remaining participants, serving as the control group, were given $50.
The findings indicated that those receiving the larger payments enjoyed greater flexibility in seeking employment that suited their preferences. The study’s authors noted, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” Recipients of the larger payments were found to be more active in their job searches, yet they tended to be more selective in their choices.
One participant shared, “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 explained that they were able to accept a lower-paying entry-level job in a desired field, which ultimately led them to achieve a six-figure salary within two years, stating, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”
While the study showed no significant difference in employment levels between those receiving larger payments and the control group, it revealed that recipients increased their spending primarily on basic necessities, including food, housing, and transportation. Payments also assisted recipients with health-related expenses like braces and treatment for alcoholism. Initially, the cash transfers reduced stress levels, though many of these health benefits appeared to diminish after two years.
Sam Altman has been an advocate for the concept of universal basic income, especially as advancements in artificial intelligence are reshaping the labor market and potentially displacing certain jobs.
Correction: An earlier version of this story inaccurately identified the organization conducting the study. It was Sam Altman’s nonprofit, OpenResearch, not OpenAI.