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 period of three years.
The study involved around 3,000 participants between the ages of 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of these participants received monthly payments of $1,000, while the remaining participants, forming the control group, were given $50.
Results from the study indicated that participants receiving the larger cash payments enjoyed greater flexibility in job searching, allowing them to pursue opportunities that matched their interests. 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 shared their experience, stating, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky.” They added, “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 described how the payments enabled them to accept a lower-paying entry-level position in a desired field, ultimately leading to a six-figure salary within two years. “If I didn’t have the cash transfers, there is no way I could have taken that pay cut,” they commented.
The study, however, found no significant difference in overall employment rates between those receiving the larger payments and the control group. Recipients mostly increased spending on essential needs, including food, housing, and transportation. Additionally, the payments assisted recipients in covering health-related expenses such as braces and treatment for alcoholism. Although the payments initially alleviated stress, many of the associated health benefits diminished after two years.
Sam Altman has expressed support for the concept of universal basic income as artificial intelligence influences the job market and displaces certain positions.
Correction: An earlier report incorrectly identified the organization that conducted the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.