Sam Altman, CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. This initiative 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 these participants received $1,000 monthly, while the remaining participants, forming the control group, were given just $50 each month.
Findings from the study indicated that those who received the larger cash sums enjoyed greater flexibility in selecting jobs that aligned with their true interests. The researchers 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 actively searching for jobs, but they were also more selective in their choices.”
One participant shared, “Thanks to the cash transfer and my ability to save, I can afford to be choosy. I don’t have to accept a subpar job just for immediate income. I have the chance to wait for a position that fits me well.” Another recipient noted that they could take a lower-paying entry-level position in their desired field and eventually reached a six-figure salary within two years, stating, “Without the cash transfers, there’s no way I could have accepted that pay cut.”
The study observed no significant difference in overall employment rates between those who received the higher payments and those in the control group. Recipients primarily increased their spending on basic necessities, with food, housing, and transportation being the main expenses. The payments also assisted recipients in addressing health-related costs, such as braces and addiction treatment. While the initial financial relief reduced stress, many of the health benefits diminished after two years.
Altman has been an advocate for universal basic income, especially as artificial intelligence transforms the job market and threatens to displace certain roles.
Correction: An earlier version of this article incorrectly stated the organization that conducted the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.