Sam Altman, the CEO of OpenAI, has financed the largest basic income experiment in the United States to date. His nonprofit organization, OpenResearch, collaborated with researchers 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 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of these participants received $1,000 each month, while the remainder, serving as a control group, received $50.
Findings revealed that those receiving the larger payments had greater flexibility in seeking employment that 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. Recipients were more likely to be searching for a job, but they were more selective.”
One participant shared their experience, stating, “Because of the cash transfer and being able to build up my savings, I’m in a position for once to be picky,” emphasizing that they could afford to avoid undesirable job offers. Another recipient disclosed that they accepted a lower-paying entry-level job in a desired field, ultimately reaching a six-figure salary within two years, crediting the cash transfers as essential for making that decision.
Despite these positive outcomes, the study found no significant difference in overall employment levels between recipients of the larger payments and the control group. Recipients primarily used the additional funds for essential needs, including food, housing, and transportation, helping them address health-related expenses such as braces and treatment for alcoholism. While the payments initially alleviated stress, many health benefits diminished after two years.
Sam Altman has been an advocate for universal basic income as artificial intelligence continues to transform the job market, potentially displacing certain roles.
A previous version of this article incorrectly attributed the study’s execution to OpenAI instead of the accurate organization, OpenResearch.