Sam Altman, CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. The study involved researchers providing unconditional cash payments to individuals living below the poverty line for a duration of three years.
The research included approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. A third of these individuals received $1,000 per month, while a control group received only $50.
Results indicated that those receiving the larger sums had increased flexibility in job searching, allowing them to pursue opportunities that better aligned with their personal goals. The authors of the study noted that cash payments can empower individuals to make more informed employment decisions.
One participant expressed that the cash transfer allowed them to save and be selective in their job search, stating, “I don’t have to take a crappy job just because I need income right now. I have the opportunity to hold out and try and find the right fit.” Another recipient shared their experience of taking a lower-paying entry-level job in a desired field, leading to a significant salary increase within two years, a move they could not have made without the cash transfers.
The study reported no significant difference in employment rates between those who received the larger payments and the control group. The additional funds largely contributed to increased spending on basic needs such as food, housing, and transportation, while also addressing health-related expenses like braces and alcohol treatment. Although the cash payments initially alleviated stress, many of the health benefits dissipated after two years.
Sam Altman has been an advocate for universal basic income as a potential solution amid the job displacement caused by advancements in artificial intelligence.
A correction has been made regarding the organization behind the study; it was conducted by Sam Altman’s nonprofit OpenResearch, not OpenAI.