Sam Altman, the CEO of OpenAI, has funded the largest basic income experiment in the United States through his nonprofit organization, OpenResearch. This initiative involved collaborating with researchers to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study encompassed around 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. A third of the participants received $1,000 each month, while the control group received only $50.
Findings from the study indicated that those receiving the larger payments had greater freedom to seek employment aligned with 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 found to be more active in job searching, but they exercised more selectivity in their choices.
One participant expressed their newfound ability to be choosy about job offers due to the cash transfers, saying, “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 reported that the financial support allowed them to accept a lower-paying role in their desired field, which ultimately led 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 stated.
Overall, the study noted no significant difference in employment rates between the two groups. Recipients mainly used the additional funds to cover basic necessities, with food, housing, and transportation as their primary expenses. The payments also aided in addressing health care needs, such as dental work and treatment for alcoholism. While participants reported an initial decrease in stress levels due to the payments, many of these health benefits diminished after two years.
Sam Altman advocates for universal basic income, particularly in the context of AI’s transformative impact on the labor market.
A correction has been made to clarify that the study was conducted by Sam Altman’s nonprofit OpenResearch, not OpenAI.