Sam Altman, the CEO of OpenAI, has financially supported 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 over a span of three years.
The study involved approximately 3,000 participants between the ages of 21 and 40 from Texas and Illinois, all earning less than $30,000 annually. A third of the participants received $1,000 per month, while the rest, forming the control group, received $50.
The findings revealed that those receiving the larger cash amounts had increased freedom to pursue job opportunities that aligned with their personal 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 were more likely to be searching for a job, but they were more selective.”
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,” emphasizing that they could afford to wait for a job that suited them instead of settling for any immediate employment. Another recipient highlighted that they took a lower-paid entry-level job in their desired field, which ultimately led to achieving a six-figure salary within two years. They remarked, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”
The study, however, found no significant difference in overall employment rates between those who received the larger payments and the control group, with recipients primarily increasing their spending on essential needs. Key expenses included food, housing, and transportation, as well as health-related costs such as braces and treatment for alcoholism. While the cash payments initially alleviated stress, many health benefits diminished after two years.
Sam Altman has been a strong advocate for universal basic income, especially amid concerns about artificial intelligence reshaping the job market and displacing certain jobs.
Correction: An earlier version of this article incorrectly indicated that the study was conducted by OpenAI; it was, in fact, carried out by Sam Altman’s nonprofit, OpenResearch.