Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. This initiative, in collaboration with researchers, provided unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study involved approximately 3,000 participants from Texas and Illinois, aged between 21 and 40, all of whom earned less than $30,000 annually. One-third of these participants received $1,000 per month (the treatment group), while the remainder (the control group) received only $50.
Findings revealed that those receiving the larger payments had greater flexibility in pursuing jobs that aligned with their desires. 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.” They observed that recipients were more actively searching for employment but were also more selective in their choices.
One participant explained that the cash transfers allowed them to save money, making it possible for 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 could accept a lower-paying entry-level position in their desired field, eventually leading to a six-figure salary within two years, attributing this success to the cash transfers: “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 the recipients and the control group, with recipients primarily increasing spending on basic needs such as food, housing, and transportation. The payments also assisted recipients in addressing health needs, including dental braces and treatment for alcoholism. While the cash assistance initially reduced stress levels, many health benefits diminished after a two-year period.
Sam Altman has been an advocate for universal basic income, particularly in the context of AI’s transformative impact on the labor market and the potential displacement of jobs.
Additionally, it’s important to note that a previous version of this article incorrectly attributed the study to OpenAI instead of Sam Altman’s nonprofit, OpenResearch.