Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States to date. The initiative, managed by his nonprofit, OpenResearch, partnered with researchers to provide 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 of whom had annual incomes under $30,000. One-third of the participants received $1,000 monthly while the remaining individuals, serving as the control group, received $50.
Findings indicate that recipients of the larger payments had increased flexibility in their job search, allowing them to pursue positions that better matched 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.”
One participant shared their experience, stating that the cash transfers allowed them to save, enabling them to be selective in their job search. “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,” they explained. Another recipient mentioned how they were able to accept a lower-paying job in a desired field, which eventually led them to a six-figure salary. “Without the cash transfers, there is no way I could have taken that pay cut,” they remarked.
The study did not find significant differences in employment rates between the two groups; recipients primarily increased their spending on basic necessities such as food, housing, and transportation. The payments also assisted with health-related expenses, including braces and treatment for alcoholism. Although the cash transfers initially reduced stress, many of the associated health benefits diminished after two years.
Altman has endorsed the concept of universal basic income, especially as advancements in artificial intelligence continue to reshape the job market and displace certain roles.
Correction: An earlier version of this article incorrectly identified the organization conducting the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.