Sam Altman, CEO of the AI company OpenAI, has financed the largest basic income research project in the U.S. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for three years.
The study included around 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of the participants received $1,000 per month, while the remaining participants, serving as the control group, received only $50.
The findings indicated that those receiving the larger payments had greater flexibility in pursuing jobs that suited their interests. The study’s authors 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 stated that having the cash transfers allowed them to save money, making it possible to be choosy about job opportunities. They said, “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 individual shared that they took a lower-paying entry-level job in a desired field, which ultimately led to a six-figure salary within two years. They remarked, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The research indicated no significant difference in employment rates between those receiving higher payments and the control group. The recipients primarily increased their spending on essential needs, with food, housing, and transportation being the largest expenses. The payments also assisted recipients in addressing health-related costs such as braces and alcohol dependency treatment. However, while the cash assistance initially alleviated stress, many of the health benefits diminished after two years.
Sam Altman advocates for universal basic income as artificial intelligence continues to transform the job market, leading to job displacement.
Note: An earlier version of this article incorrectly stated that OpenAI conducted the study; it was actually Sam Altman’s nonprofit, OpenResearch.