Sam Altman, the CEO of OpenAI, has financed the most extensive basic income study conducted in the United States to date through his nonprofit organization, OpenResearch. The initiative partnered 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 between 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. A third of these individuals received $1,000 monthly, while the remaining participants, serving as a control group, received just $50.
Findings from the study indicated that those receiving the larger cash payments enjoyed greater freedom in their job search, allowing them to pursue employment opportunities that were more aligned with their preferences and values.
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.”
One 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,” explaining that they could afford to wait for a job that was a better fit rather than settling for a lower-quality position out of immediate need for income.
Another recipient noted that they took an entry-level position in their 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 stated.
The study detected no significant difference in employment levels between recipients of the larger payments and the control group. Recipients primarily increased their spending on essential needs such as food, housing, and transportation. The payments also assisted them in addressing health needs, including braces and treatment for alcoholism. While the payments helped alleviate stress initially, many of the health benefits diminished over two years.
Altman has been an advocate for universal basic income, particularly as artificial intelligence continues to reshape the labor market and potentially displace jobs.
Correction: An earlier version inaccurately identified the organization conducting the study. It was Sam Altman’s nonprofit OpenResearch, not OpenAI.