Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit, OpenResearch. This initiative involved researchers providing unconditional cash payments to individuals living below the poverty line for a period of three years.
The study included 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 each month, while the remaining participants, serving as the control group, received $50.
Findings from the study revealed that those receiving the larger payments were more empowered to seek jobs that aligned better with their preferences. The authors of the study noted that cash transfers can enhance individuals’ ability to make employment choices that resonate with their personal situations, objectives, and values. Recipients were found to be more proactive in their job searches, opting for positions that suited them best.
One participant commented on the positive effect of the cash transfer, stating, “Thanks to the [cash transfer] and my ability to save, I can finally be selective,” and emphasized the freedom to avoid unsatisfactory jobs in pursuit of better opportunities. Another recipient shared a similar experience, explaining that the financial support allowed them to pursue a less-paid entry-level job in their desired field, which ultimately led them to secure a six-figure salary within two years. They remarked that without the cash transfers, they would not have been able to take that initial pay cut.
The study indicated no significant difference in employment rates between those who received the substantial payments and the control group, noting that recipients tended to increase spending primarily on essential needs such as food, housing, and transportation. Furthermore, the payments assisted them in addressing health needs, including braces and treatment for alcoholism. While the cash transfers initially alleviated stress, many of the associated health benefits diminished after two years.
Sam Altman has been a vocal advocate for the concept of universal basic income, particularly as artificial intelligence continues to transform the labor market and displace certain jobs.