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 for three years to individuals living below the poverty line.
The study involved approximately 3,000 participants aged between 21 and 40, hailing from Texas and Illinois. All participants earned less than $30,000 annually. A third of them received $1,000 per month as the treatment group, while the remaining participants in the control group received $50.
Findings from the study indicated that recipients of the higher payments experienced greater flexibility in pursuing jobs that better suited their interests and desires.
“Cash can enhance individuals’ ability to make employment decisions that align with their unique circumstances, ambitions, and values. Recipients were more likely to seek employment but were also more discerning,” the authors stated.
One participant noted, “Thanks to the cash transfer and the ability to save, I can finally be selective,” adding, “I don’t have to settle for a low-quality job just to make ends meet. I can afford to wait for the right opportunity.”
Another recipient mentioned that they were able to accept a lower-paying entry-level job in their desired field, which later led to a six-figure salary within two years. “Without the cash transfers, I wouldn’t have been able to accept that pay cut,” they explained.
The study revealed no significant difference in employment rates between the recipients of the larger payments and the control group. Recipients primarily increased their spending on essential needs, with food, housing, and transportation being the top expenditures. Payments also enabled recipients to address health-related expenses, such as braces and treatment for alcoholism. Although the payments initially alleviated stress, many of the associated health benefits diminished after two years.
Sam Altman has advocated for universal basic income as artificial intelligence continues to transform the job market and displace certain roles.