Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. This initiative involved providing individuals living below the poverty line with unconditional cash payments over a span of three years.
The study involved around 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. A third of the participants received $1,000 monthly, while the remaining participants, who served as the control group, received $50.
Findings of the study indicated that those receiving the larger payments had greater flexibility in pursuing jobs that aligned with their preferences. According to the study’s authors, “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 shared in an interview, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky,” adding that they could avoid taking unsatisfactory jobs just for the immediate income. Another recipient noted that they were able to accept a lower-paying entry-level position 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 employment levels between those who received the higher payments and the control group. Recipients primarily used the funds to cover essential needs such as food, housing, and transportation. Additionally, the payments assisted recipients with health-related expenses, including braces and treatment for alcoholism. While the initial cash transfers decreased stress levels, many of the associated health benefits diminished after two years.
Altman has been an advocate for universal basic income, especially as artificial intelligence continues to transform the labor market and displace certain jobs.
This article previously misstated that the study was conducted by OpenAI; it was in fact carried out by Sam Altman’s nonprofit, OpenResearch.