Sam Altman, CEO of OpenAI, has funded the largest basic income study ever conducted in the United States. His nonprofit, 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 about 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. A third of the participants received $1,000 per month, while the remaining participants, serving as the control group, received only $50.
Results indicated that those receiving the larger payments experienced increased flexibility in job searching. The authors of the study noted that cash assistance enhances individual agency, enabling recipients to make employment decisions that are more aligned with their personal goals and values. The study revealed that while recipients were more proactive in seeking employment, they were also more discerning in their choices.
One study participant shared their experience, stating that the cash transfers allowed them to enhance their savings, providing the opportunity to be selective in job applications. Another recipient noted their ability to accept a lower-paying entry-level position in their desired field, which subsequently led to a six-figure salary two years later, a move they believe would not have been feasible without the financial assistance.
However, the study did not find significant differences in employment levels between recipients of the larger payments and those in the control group. The increased financial support primarily helped participants cover basic living expenses, such as food, housing, and transportation, and also addressed health-related needs, like dental braces and treatment for addiction. While the payments were initially effective in alleviating stress, many of the associated health benefits diminished after two years.
Sam Altman has been a strong advocate for universal basic income, particularly in light of the changes in the labor market driven by advancements in artificial intelligence.
Note: An earlier version of this article mistakenly credited OpenAI as the organization behind the study; it was, in fact, Sam Altman’s nonprofit, OpenResearch.