Sam Altman, CEO of OpenAI, has backed the most extensive basic income study in the United States to date through his nonprofit organization, OpenResearch. The initiative provides unconditional cash payments to individuals living below the poverty line over a three-year period.
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 these participants received $1,000 per month, while the remaining participants, forming the control group, received only $50.
Findings from the study indicate that recipients of the larger payments had more freedom to seek jobs aligned with their preferences. The authors of the study noted that, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values,” highlighting that recipients tended to be more selective in their job searches.
One participant mentioned that the cash transfer allowed them to accumulate savings and take a more thoughtful approach to job hunting, 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 shared their experience of taking a lower-paid entry-level job in their desired field, which eventually led 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 difference in overall employment rates between those who received larger payments and the control group. Recipients primarily used the funds to cover essential expenses, including food, housing, and transportation. The payments also facilitated access to health services, such as dental braces and treatment for alcoholism. Although the financial support initially alleviated stress, many of the health benefits faded after two years.
Altman has expressed support for universal basic income as a potential solution to the disruptions in the labor market caused by advancements in AI technology.
This report has been amended to clarify that the study was conducted by Sam Altman’s nonprofit OpenResearch and not OpenAI.