Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date. His nonprofit, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for three years.
The study involved 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, who served as the control group, were given $50.
Findings revealed that those receiving the larger payments had greater flexibility in seeking jobs that aligned with 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 mentioned, “Thanks to the cash transfer and my ability to save, I can afford to be picky. I don’t have to settle for a poor job just to make ends meet. I can afford to wait for the right opportunity.” Another recipient shared that their cash transfers allowed them to take a lower-paying entry-level position in their desired field, ultimately leading to a six-figure salary after two years. “Without those cash transfers, I couldn’t have taken that pay cut,” they said.
The study noted no significant difference in employment rates between those receiving the larger payments and the control group. Recipients primarily increased spending on basic necessities, such as food, housing, and transportation, and were able to address health needs like braces and treatment for alcoholism. Although the payments initially lowered stress levels, many health benefits diminished after two years.
Altman has been an advocate for universal basic income, particularly as AI continues to transform the labor market and reduce available jobs.
Note: A previous version of this article incorrectly attributed the study to OpenAI instead of Sam Altman’s nonprofit OpenResearch.