Sam Altman, the CEO of OpenAI, has financed the most extensive basic income study in the United States to date. His nonprofit, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line over a span of three years.
The study included approximately 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 each month, while the remaining participants, constituting the control group, were given $50.
Results indicated that those receiving the larger payments enjoyed greater flexibility in seeking employment opportunities that matched their personal desires.
According to the study’s authors, “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.”
A participant shared, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky,” further stating, “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 that they accepted a lower-paid entry-level position in a desired field, which led 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 noted.
The study showed no significant difference in employment rates between recipients of the larger payments and those in the control group. Recipients mainly increased spending on essential needs such as food, housing, and transportation. Additionally, the payments enabled them to cover healthcare expenses like braces and treatment for alcoholism. Although the payments temporarily alleviated stress, many of the health benefits diminished after two years.
Altman has advocated for the concept of universal basic income as the rise of AI transforms the labor market and displaces certain jobs.
A correction has been issued regarding the original reporting, clarifying that the study was conducted by Sam Altman’s nonprofit OpenResearch, not OpenAI.