Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. This initiative involved researchers providing unconditional cash payments to individuals living below the poverty line over a three-year period.
The study involved around 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 each month, while the remaining participants, serving as a control group, were awarded $50.
Findings from the study revealed that those receiving the larger payments had greater flexibility to seek jobs that suited their preferences. The authors observed, “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 were also more selective.”
One participant commented that the cash transfers allowed them the chance to be choosy about 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 noted that the financial support enabled them to accept a lower-paid entry-level position in an industry they were passionate about, which eventually led them to a six-figure salary within two years, something they wouldn’t have pursued without the cash assistance.
The study, however, indicated no significant difference in employment levels between those who received the larger payments and those in the control group. It was found that recipients mostly increased their spending on basic necessities such as food, housing, and transportation, while the payments also helped cover health-related expenses like braces and alcoholism treatment. Although the payments provided initial stress relief, many health benefits seemed to diminish after two years.
Altman has been a strong advocate for universal basic income, especially as advancements in artificial intelligence continue to reshape the labor market and eliminate certain jobs.
It is worth noting that a previous version of this article incorrectly identified the organization conducting the study; it was indeed Sam Altman’s nonprofit OpenResearch, not OpenAI.