Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. The 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 21 to 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 a control group, received only $50.
Findings from the study indicated that those who received the larger payments enjoyed greater flexibility in pursuing jobs that better matched their personal desires and skills. The authors of the study highlighted that cash payments can empower individuals to make employment decisions that reflect their unique circumstances and aspirations. Recipients were found to be more likely to seek employment, albeit with a more selective approach.
One participant noted that the cash transfer allowed them to build savings, enabling them to be discerning about job opportunities. They remarked, “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 participant shared that the financial support allowed them to accept an entry-level job in their field of interest, which led to a six-figure salary within two years. They stated, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study reported no significant differences in employment rates between the recipients of the larger payments and the control group. Recipients primarily used the funds for essential expenses, including food, housing, and transportation. The financial assistance also helped address health needs, such as braces and treatment for alcoholism. While the cash transfers initially alleviated stress, many of the associated health benefits diminished after two years.
Altman has been a strong advocate for universal basic income as a potential response to the changes in the job market brought about by advancements in artificial intelligence.