Sam Altman, the CEO of OpenAI, has funded the largest guaranteed income study in the United States to date through his nonprofit, OpenResearch. The initiative involved giving unconditional cash payments to individuals living below the poverty line over the course of three years.
The study included approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of these participants received $1,000 each month, while the remaining participants, serving as a control group, received $50.
Findings from the study indicated that those receiving the larger payments experienced increased flexibility in seeking employment that matched their preferences. The researchers 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 highlighted how the cash transfers allowed them to save money, enabling them to be more discerning in their job search. They expressed, “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, thanks to the cash transfers, they were able to accept a lower-paying entry-level position in their desired field. This decision ultimately 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 stated.
The study revealed no significant differences in employment rates between participants who received the higher payments and those in the control group. The recipients primarily used the funds for essential expenses, including food, housing, and transportation. The payments also assisted some recipients with health-related costs like braces and treatment for alcoholism. While the financial support initially alleviated stress, many health improvements diminished after two years.
Altman advocates for universal basic income, particularly in light of how artificial intelligence is transforming the labor market and potentially displacing jobs.
Additionally, it should be noted that an earlier version of this report incorrectly identified the organization conducting the study; it was OpenResearch, not OpenAI.