Sam Altman, the CEO of OpenAI, has funded the most extensive basic income study in the United States. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line over a three-year period.
The study involved approximately 3,000 Texans and Illinois residents aged 21 to 40, all of whom had annual incomes below $30,000. One-third of these participants received $1,000 monthly, while the remaining participants in the control group were given $50.
Results indicated that those receiving the larger sums had greater freedom in job selection, enabling them to pursue positions that better suited their aspirations. According to the study’s authors, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” As a result, recipients were not only more likely to seek employment but were also more discerning in their choices.
One participant expressed that the cash transfer allowed them to save money, stating, “I’m in a position for once to be picky. I don’t have to take a crappy job just because I need income right now.” Another participant shared that they were able to accept an entry-level position with lower pay in a desired field, which ultimately led to a six-figure salary within two years. They noted, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
Despite these positive outcomes, the study showed no significant difference in employment levels between those receiving the larger payments and the control group. The recipients did increase their spending on essential needs, with the majority of their expenses going toward food, housing, and transportation. The payments also assisted recipients in covering health-related costs, such as braces and alcohol treatment. While the additional funds initially alleviated stress, many of the health benefits diminished after two years.
Altman has been a strong advocate for universal basic income, particularly as the rise of artificial intelligence significantly alters the labor market and displaces jobs.
Correction: An earlier version of this article incorrectly identified the organization that conducted the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.