Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date. This initiative, conducted by his nonprofit organization OpenResearch, 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. One-third of the participants received $1,000 per month, while the remaining participants, who served as the control group, received $50.
Findings from the study revealed that those receiving the larger payments had greater flexibility in their job searches. According to the authors, “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 noted that the cash transfer allowed them to build up savings, enabling them to be more discerning in their job search. They stated, “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.”
Another recipient shared that they were able to accept a lower-paid entry-level job in their desired field, ultimately achieving a six-figure salary within two years. They remarked, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”
The study did not find significant differences in employment levels between those receiving the higher payments and the control group; however, it noted that recipients primarily increased their spending on essential needs, including food, housing, and transportation. Payments also assisted recipients in addressing health issues such as braces and treatment for alcoholism. While initial stress levels decreased with the cash transfers, many health benefits diminished after two years.
Sam Altman has advocated for universal basic income in light of the ongoing changes in the labor market driven by artificial intelligence.
Correction: An earlier version of this story incorrectly identified the group conducting the study. It was Sam Altman’s nonprofit OpenResearch, not OpenAI.