Sam Altman, the CEO of OpenAI, has financed the most extensive basic income study 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 for a duration of three years.
The study involved around 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of these individuals received $1,000 per month, while the remaining participants, who served as a control group, were given $50.
Results indicated that those receiving the larger payments had greater flexibility in seeking jobs that 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 commented on the transformative impact of the cash transfers, stating, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky. 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 shared their experience of accepting a lower-paid entry-level position in a desired field, which eventually led to attaining 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 remarked.
The study did not observe significant differences in employment levels between recipients of larger payments and the control group. Recipients primarily increased spending on basic necessities, including food, housing, and transportation. The cash payments also helped cover health-related expenses such as braces and alcoholism treatment. While the financial assistance initially alleviated stress, many health benefits diminished after two years.
Sam Altman advocates for universal basic income as a potential solution amidst the changes in the labor market caused by advancements in artificial intelligence.
Correction: An earlier version of this article incorrectly identified the organization that conducted the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.