Sam Altman, the CEO of OpenAI, has funded the largest basic income study to date in the United States through his nonprofit organization, OpenResearch. This initiative involved providing unconditional cash payments to individuals living below the poverty line for a three-year period.
The study included around 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of the participants received $1,000 each month, referred to as the recipients, while the remainder, serving as the control group, received only $50 per month.
Findings from the study indicated that those receiving the larger payments experienced greater flexibility in job selection. 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 study participant remarked, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky. 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 how the payments allowed them to pursue a lower-paying entry-level position in their desired field, leading to a six-figure salary within two years, stating, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”
The study revealed no significant differences in employment levels between those who received the larger payments and the control group. Recipients primarily increased their spending on basic necessities, including food, housing, and transportation. Additionally, the payments assisted recipients in addressing health care needs, such as braces and treatment for alcoholism. While initial payments reduced stress levels, many of these health benefits diminished after two years.
Sam Altman has been an advocate for universal basic income, particularly in light of the changes in the labor market brought on by artificial intelligence, which is expected to displace some jobs.
Note: This version clarifies that the study was conducted by Sam Altman’s nonprofit organization OpenResearch, not OpenAI, correcting an earlier error in reporting.