Sam Altman, CEO of OpenAI, has financed the largest basic income research project in the United States to date. His nonprofit organization, OpenResearch, collaborated with researchers to distribute unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study involved around 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. A third of these participants received $1,000 per month, known as the recipients, while the remaining participants, serving as the control group, were allocated $50.
Findings from the study revealed that those receiving larger payments had greater freedom to seek employment that genuinely interested them. 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 study participant expressed, “Thanks to the [cash transfer] and the ability to save, I’m finally in a position to be choosy,” adding, “I don’t have to accept a poor job just for immediate income. I have the chance to wait for the right opportunity.” Another recipient shared that they were able to accept a lower-paying entry-level role in their desired field, which eventually led to a six-figure salary within two years, stating, “Without the cash transfers, there’s no way I could have taken that pay cut.”
Although the study showed no significant differences in employment rates between the recipient group and the control group, the fund recipients primarily increased their spending on essential items such as food, housing, and transportation. The payments also assisted in covering health-related expenses, including braces and treatment for alcoholism. While there were initial reductions in stress levels among recipients, many observed that health benefits diminished after two years.
Sam Altman has long advocated for universal basic income, particularly in light of how artificial intelligence is reshaping the labor market and potentially eliminating certain jobs.
This article has been updated to correct an earlier inaccuracy; the study was conducted by Sam Altman’s nonprofit OpenResearch, not OpenAI.