Sam Altman, the CEO of OpenAI, has financially backed the largest basic income study in the United States to date. His nonprofit organization, OpenResearch, partnered with researchers to provide unconditional cash payments to individuals living below the poverty line for a three-year period.
The study involved 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, while the remaining participants, serving as a control group, were given $50.
Findings from the study indicated that those receiving the larger payments had more freedom to pursue job opportunities that suited their personal preferences. The authors of the study noted, “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.”
One participant in the study shared, “Because of the cash transfer and being able to build up my savings, 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. I have the opportunity to hold out and try and find the right fit.” Another recipient highlighted their ability to accept a lower-paid position in a desired field, which ultimately 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.”
While the study observed no significant differences in employment rates between the recipients and the control group, it found that the recipients primarily increased spending on essential needs, including food, housing, and transportation. The cash payments also enabled them to cover health-related expenses, such as braces and treatment for alcoholism. Although the payments initially alleviated stress, many of the health benefits declined after two years.
Altman has been an advocate for universal basic income as artificial intelligence transforms the job market and leads to job displacement.
Correction: An earlier version of this article inaccurately attributed the study to OpenAI. It was conducted by Sam Altman’s nonprofit, OpenResearch.