Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit, OpenResearch. This initiative aimed to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study involved 3,000 participants aged between 21 and 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of the participants received $1,000 per month, termed the recipients, while the remaining individuals, designated as the control group, received $50.
Findings from the research indicated that those receiving the larger payments had greater flexibility to pursue jobs aligned with their 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 remarked, “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 mentioned how the financial support allowed them to accept a lower-paying entry-level job in a desired field, ultimately leading to a six-figure salary within two years. “If I didn’t have the cash transfers, there is no way I could have taken that pay cut,” they stated.
The study did not reveal significant differences in employment rates between the larger payment recipients and the control group. Instead, the recipients primarily increased their spending on basic needs such as food, housing, and transportation. Additionally, the payments assisted them in covering health-related expenses, including braces and treatment for alcoholism. While initial stress levels decreased with the payments, many health benefits diminished after two years.
Altman has been an advocate for universal basic income, particularly in light of the shifts in the job market caused by advancements in artificial intelligence.
Correction: An earlier version of this story incorrectly identified the group that conducted the study as OpenAI; it was the nonprofit OpenResearch led by Sam Altman.