Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States through his nonprofit organization, OpenResearch. The initiative provided unconditional cash payments to individuals living below the poverty line over a period of three years.
The study included approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom were earning less than $30,000 annually. A third of these participants received $1,000 each month, while the remaining individuals, who comprised the control group, received just $50 a month.
The findings indicated that those receiving the higher payments had greater flexibility in seeking jobs that were aligned with their personal aspirations. 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 job searching but were also more discerning in their choices.
One study participant explained how the cash transfers allowed them to save and become selective about job opportunities, stating, “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 mentioned that the support enabled them to accept a lower-paying entry-level role in a desired field, which eventually led to 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 revealed that there was no significant difference in employment rates between the recipients and the control group. Recipients primarily utilized the funds for essential needs, with notable expenditures on food, housing, and transportation. The payments also assisted in covering health-related costs, including dental braces and alcohol treatment. Although the financial support initially alleviated stress, many of the associated health benefits diminished after two years.
Sam Altman has been an advocate for universal basic income, especially in light of how advancements in artificial intelligence are transforming the labor market and rendering some jobs obsolete.
It should be noted that an earlier version of this article incorrectly attributed the study’s sponsorship. The research was conducted by Sam Altman’s nonprofit, OpenResearch, not OpenAI.