Sam Altman, the CEO of OpenAI, financed the largest basic income experiment 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 over a three-year period.
The study involved approximately 3,000 participants between the ages of 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of these participants received $1,000 per month, while the remaining participants, acting as a control group, were given $50.
Results indicated that those receiving the larger payments had greater flexibility to pursue jobs that matched their skills and aspirations. The study’s authors highlighted that providing cash can empower individuals to make employment choices that are in line with their personal circumstances and goals. Recipients were more likely to seek employment but were also more discerning in their job searches.
One participant expressed that the cash transfer allowed them to build savings, enabling them to be selective in their job choices rather than settling for any available position out of immediate financial necessity. Another recipient noted that the cash transfers helped them accept a lower-paying entry-level job in their desired field, which eventually led to a six-figure salary within two years, something they would not have been able to do without the financial assistance.
The study found no significant differences in overall employment rates between the recipients and the control group, with participants primarily using the payments to cover essential living costs, such as food, housing, and transportation. Additionally, these payments contributed to addressing health-related expenses, including braces and treatment for alcoholism. While the payments initially alleviated stress, many of the associated health benefits diminished after two years.
Sam Altman has been a strong advocate for universal basic income, particularly as artificial intelligence continues to transform the labor market and displace certain jobs.
Correction: An earlier version of this story mistakenly identified the organization conducting the study as OpenAI; it was Sam Altman’s nonprofit, OpenResearch.