Sam Altman, the CEO of OpenAI, has funded 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 duration of three years.
The study involved 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, serving as the control group, were given $50.
Findings from the study revealed that those receiving the larger payments experienced greater flexibility in seeking jobs that better matched their preferences. 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.”
A participant in the study 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. 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 they could accept a lower-paying entry-level job in their desired field, which eventually led 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 did not indicate significant differences in employment levels between the recipients of the larger payments and the control group. Instead, it showed that recipients primarily increased their spending on basic needs such as food, housing, and transportation. The payments also assisted recipients in covering health-related expenses, including braces and treatment for alcoholism. While the cash transfers initially alleviated stress, many of the associated health benefits diminished after two years.
Sam Altman has advocated for the concept of universal basic income as a strategy to address the disruptions in the labor market caused by artificial intelligence, which is predicted to lead to job displacement.
It is worth noting that a previous version of this article incorrectly identified the group conducting the study. The correct organization is Sam Altman’s nonprofit, OpenResearch, not OpenAI.