Sam Altman, CEO of OpenAI, has initiated the largest basic income study in the United States through his nonprofit organization, OpenResearch. This groundbreaking study aimed 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 between 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of the participants received $1,000 per month for 36 months, while the remaining participants, serving as the control group, received only $50.
The research revealed that those receiving the higher payments experienced greater flexibility in their employment searches. The authors of the study emphasized that increased cash flow significantly enhanced people’s ability to make employment choices that were more aligned with their personal goals and values. Recipients were reported to be more selective in their job searches, eschewing low-quality positions for better opportunities.
One participant articulated the difference the cash transfers made, stating, “Because of the cash transfer and being able to build up my savings, I’m in a position for once to be picky.” Another recipient highlighted how the financial support allowed them to transition into a lower-paid entry-level job in a desired career field, ultimately leading to a lucrative six-figure salary in just two years.
While the study did not note significant disparities in employment levels between those who received the larger payments and the control group, it did reveal that recipients predominantly used the funds to cover essential expenses, including food, housing, and transportation. The financial assistance also proved helpful for health-related needs, such as dental braces and addiction treatment. Although the cash transfers reduced stress levels initially, many of the health benefits diminished after two years.
Sam Altman has been a vocal advocate for universal basic income, especially in light of how artificial intelligence is transforming the job market and displacing certain roles.
It is also important to note that there was a correction in the understanding of the study’s conducting group; it was OpenResearch, not OpenAI, that carried out the study.
This study represents a significant step forward in exploring the potential of basic income to empower individuals and provide them with more control over their employment options during a time of economic uncertainty. As discussions around universal basic income gain traction, this research may guide future policymaking that aims to address poverty in innovative ways.