Sam Altman, the CEO of OpenAI, has funded the largest basic income experiment in the United States to date. Conducted by his nonprofit organization OpenResearch, the study involved 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 per month, while the remaining participants, part of a control group, received only $50 monthly.
Results indicated that those receiving the larger monthly payments had greater freedom to pursue jobs that aligned more closely with their aspirations. 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 more likely to be searching for a job, but they were more selective.”
One participant reflected on how the cash transfers allowed them to build savings and be more discerning 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 explained how the financial support enabled them to accept a lower-paid position in their desired field, ultimately leading to a six-figure salary within two years. They remarked, “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 employment rates between recipients of the larger payments and the control group. Recipients primarily increased their spending on essential needs such as food, housing, and transportation. Additionally, the payments allowed recipients to address health-related expenses, including braces and treatment for alcoholism. While the financial aid initially alleviated stress, many recipients found that the health benefits diminished after two years.
Altman has been a strong advocate for universal basic income, particularly in the context of how artificial intelligence is transforming the job market and potentially displacing workers.
A previous version of this article incorrectly identified the organization conducting the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.