Sam Altman, CEO of OpenAI, has financed the most extensive basic income experiment in the United States to date. His nonprofit organization, OpenResearch, partnered with researchers to provide unconditional cash payments to individuals living below the poverty line for a duration 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 these individuals received monthly payments of $1,000, while the remaining participants were placed in a control group that received $50 per month.
Findings from the study indicated that those receiving the larger cash payments had greater flexibility to pursue their desired job opportunities. 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 expressed that the cash transfers allowed them to save money, enabling them to be more discerning in their job search. They mentioned, “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 field of interest, leading to a six-figure salary within two years, stating, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”
The study revealed no significant differences in employment rates between those who received higher payments and the control group. Recipients primarily increased their spending on essential needs such as food, housing, and transportation. The cash payments also facilitated health-related expenses like braces and alcoholism treatment. Although the payments initially alleviated stress, many health benefits diminished after two years.
Altman has been a vocal supporter of universal basic income as advancements in AI continue to disrupt the labor market and displace certain jobs.
A correction has been made to clarify that the organization behind the study was Sam Altman’s nonprofit OpenResearch, not OpenAI.