Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. The initiative aimed to provide individuals living below the poverty line with unconditional cash payments over a three-year period.
The study involved approximately 3,000 participants aged 21 to 40 in Texas and Illinois who earned less than $30,000 annually. A third of the participants received monthly payments of $1,000, while the remaining participants, serving as the control group, received just $50.
Findings from the study indicated that those receiving the higher payments had greater freedom to seek employment that aligned with their preferences. The authors of the study noted that cash assistance can empower individuals to make job-related decisions that reflect their personal circumstances and objectives. Participants receiving the larger sums reported being more proactive in their job searches, though they were also more selective in their choices.
One participant shared that the cash transfer allowed them to save, enabling them to be more discerning in their job search. They expressed relief at not needing to accept unsatisfactory job offers immediately due to financial constraints. Another recipient mentioned that with the financial support, they could afford to take a lower-paying entry-level job in a desired field, ultimately leading to a six-figure salary in just two years. They attributed their ability to make this career move to the cash transfers, stating that without them, they would not have been able to take such a pay cut.
Despite these positive outcomes, the study reported no significant differences in employment rates between those who received the larger payments and the control group. Recipients primarily used the funds for essential living expenses, including food, housing, and transportation. The payments also contributed to covering health-related needs, such as braces and treatment for alcoholism. Although the cash assistance initially alleviated stress, many health benefits diminished after two years.
Altman is a vocal advocate for universal basic income, especially as the rise of artificial intelligence continues to transform the job market and lead to job displacement.
Additionally, it is important to note that an earlier version of this report inaccurately identified the organization conducting the study; it was Sam Altman’s nonprofit, OpenResearch, rather than OpenAI.