Sam Altman, the CEO of OpenAI, has funded the largest basic income experiment in the United States through his nonprofit, OpenResearch. This study provided unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study involved around 3,000 participants aged between 21 and 40 from Texas and Illinois, all earning less than $30,000 annually. A third of the participants received $1,000 per month, while the remaining participants received only $50.
Findings from the study indicated that those who received the larger payments had greater flexibility in job searching, allowing them to pursue employment that aligned with their personal goals and values. 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 that the cash transfers enabled them to save and be more discerning in their job applications. “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 stated.
Another recipient described how the financial support allowed them to accept a lower-paid entry-level position in a desired field, leading to a six-figure salary within two years. “If I didn’t have the cash transfers, there is no way I could have taken that pay cut,” they revealed.
The study did not reveal significant differences in employment levels between the larger payment recipients and the control group. However, it was noted that recipients primarily increased spending on essential needs like food, housing, and transportation. Additionally, the payments helped recipients manage health-related expenses, such as braces and alcohol treatment. Although the cash transfers initially alleviated stress, many of these health benefits diminished over time.
Altman has advocated for universal basic income in light of how artificial intelligence is changing the labor market and impacting job availability.
Correction: An earlier version of this story inaccurately referenced the organization behind the study. It was conducted by Sam Altman’s nonprofit OpenResearch, not OpenAI.