Sam Altman, the CEO of OpenAI, has financed the largest 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 approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of the participants received $1,000 monthly, while the control group received only $50.
The research indicated that those receiving the larger payments felt empowered to seek jobs that better suited their interests and aspirations. The authors of the study noted that cash payments could enhance individuals’ ability to make employment choices that align with their personal circumstances and goals.
One participant remarked on the impact of the cash transfers, explaining that for the first time, they were able to be selective in their job search, 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 shared their experience of accepting a lower-paying job in their desired field, which eventually led them to achieve a six-figure salary within two years. They credited the cash transfers for enabling them to make that career move, stating, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”
The study revealed no significant difference in overall employment levels between those who received larger payments and the control group. However, recipients did increase their spending on essential needs, such as food, housing, and transportation. Additionally, the payments assisted in covering health-related expenses, including treatment for conditions like alcoholism. Although the initial financial relief decreased stress, many of the health benefits dissipated after two years.
Altman has advocated for the concept of universal basic income as artificial intelligence continues to transform the labor market and replace certain jobs.
A correction was issued regarding an earlier report, clarifying that the study was conducted by Sam Altman’s nonprofit, OpenResearch, rather than OpenAI.