Sam Altman, the CEO of OpenAI, has financed the largest basic income research project in the United States to date. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
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 individuals, who made up the control group, received only $50.
Results from the study indicated that those receiving the larger payments experienced greater flexibility in their job searches, opting for positions that better aligned with their preferences and aspirations.
“Cash can enhance people’s ability to make employment choices that resonate with their individual circumstances, goals, and values. Recipients were not only more likely to be job-hunting but were also more discerning,” commented the authors of the study.
In an interview, one participant reflected on the difference the cash transfer made: “Thanks to the cash assistance and the chance to build my savings, I can finally be selective. I don’t have to settle for a low-quality job just to make ends meet. I can afford to wait for the right opportunity.”
Another recipient shared how the payments allowed them to accept a lower-paid entry-level role in a desired field, ultimately leading to a six-figure salary within two years. “Without those cash transfers, I wouldn’t have been able to afford that pay cut,” they explained.
The findings showed no significant difference in employment levels between the recipients and the control group, with participants primarily increasing their expenditures on basic necessities. Major spending areas included food, housing, and transportation, while the payments also assisted with health-related costs, such as braces and alcoholism treatment. Although the payments initially alleviated stress, many of the health benefits diminished after two years.
Altman has been a strong advocate for universal basic income, particularly as AI continues to alter the job market and phase out certain positions.
A correction was made regarding the study’s conductors: it was Sam Altman’s nonprofit OpenResearch, not OpenAI.