Sam Altman, the CEO of OpenAI, has invested in the largest unconditional cash transfer study conducted in the United States to date, through his nonprofit, OpenResearch. This initiative aimed to explore the effects of basic income on individuals living below the poverty line by providing financial support over a three-year period.
The study involved 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. Of these participants, one-third received $1,000 a month, while the remaining participants, who served as a control group, received $50.
Findings from the study indicated that those receiving larger monthly payments had a greater ability to pursue employment that suited their personal goals and circumstances. According to the authors, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” Interestingly, while recipients were more likely to be searching for jobs, they exhibited a more selective approach in their job search.
One participant shared how the cash transfers allowed them to save and be selective in their job offers, stating, “I don’t have to take a crappy job just because I need income right now.” Another testimony highlighted how a recipient took a lower-paid entry position in their desired field and, within two years, advanced to a six-figure salary. They credited the cash transfers as a key factor that enabled them to make that career move.
Despite the positive outcomes in terms of job selection, the study reported no significant differences in overall employment levels between the cash recipients and the control group. The additional income primarily went towards essential expenditures, including food, housing, and transportation. Recipients also mentioned being able to afford health-related needs, such as dental braces and treatment for alcoholism. However, the initial stress reduction observed with the cash transfers seemed to diminish over time.
Sam Altman has long advocated for universal basic income, especially as advances in AI technology continue reshaping the labor landscape and displacing certain jobs.
This study illustrates the potential benefits of providing financial support to those in need, highlighting how it can empower individuals to make more informed employment choices and strive for careers that align more closely with their aspirations. Such initiatives could lead to broader discussions about the role of guaranteed income in our evolving economy, especially in light of technological advancements in the workplace that are set to change the nature of work and income distribution.
Summary: Sam Altman’s funding of a major basic income study reveals positive outcomes for recipients in job selection and financial stability, encouraging conversations about universal basic income as AI transforms the employment landscape.