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 involved providing unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study included approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of the participants received $1,000 per month, referred to as the recipients, while the remaining participants, forming the control group, received $50.
Findings from the research indicated that recipients of the larger amounts of cash enjoyed greater flexibility in pursuing employment that aligned with their desires and aspirations. According to the authors of the study, “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.”
A participant in the study shared their experience, saying, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky,” adding, “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 noted that they were able to secure a lower-paying entry-level position in a desired field, which later led to a six-figure salary within two years. They remarked, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”
The study revealed no significant difference in employment rates between those receiving larger payments and the control group. The increased funds primarily led recipients to spend more on essential needs such as food, housing, and transportation. Additionally, the payments assisted in covering health-related expenses, including braces and treatment for alcoholism. While the initial payments alleviated stress, many of the health benefits diminished after two years.
Sam Altman has been an advocate for universal basic income, recognizing its potential importance as artificial intelligence transforms the labor market and displaces certain jobs.
Correction: An earlier version of this story mistakenly identified the organization that conducted the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.