Sam Altman, CEO of OpenAI, has funded the largest basic income research study in the United States to date. This initiative, led by his nonprofit organization OpenResearch, aims to provide unconditional cash payments to individuals living below the poverty line for three years.
The study involved approximately 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 control group was given just $50.
The findings indicated that those receiving the larger payments had greater flexibility in their job searches. The authors of the study noted, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” Recipients were found to be more active in job searching, but with a more selective approach.
One study participant emphasized how the cash transfer allowed them to save and be choosier with job opportunities, 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 entry-level position in a desired field, which eventually led to a six-figure salary after two years, attributing their ability to take that financial risk to the cash transfers.
Despite the benefits observed among recipients, the study revealed no significant difference in overall employment levels compared to the control group. Recipients primarily used the funds to cover essential needs such as food, housing, and transportation. Furthermore, the payments provided some relief for health-related expenses, but many of the health benefits associated with the payments diminished after two years.
Altman has been an advocate for universal basic income, especially in light of how artificial intelligence is transforming the labor market and potentially displacing jobs.
Correction: An earlier version misidentified the organization conducting the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.