Unconditional Cash: A Game Changer for Job Seekers?

Sam Altman, CEO of OpenAI, has funded the largest basic income study in the United States to date, through his nonprofit organization, OpenResearch. This initiative involved researchers providing 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 earned less than $30,000 annually. One-third of these participants received $1,000 each month, while the remaining participants, who served as a control group, were given only $50.

Results indicated that those receiving the larger payments experienced increased flexibility in job searching, allowing them to pursue positions that better aligned with their personal preferences. 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.” Participants reported being more selective in job searches as a result.

One 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,” explaining that they felt empowered to avoid unsatisfactory employment purely for immediate income needs. Another recipient mentioned taking a lower-paid entry-level job in their desired field, which ultimately 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 also revealed no significant difference in overall employment rates between those receiving the larger payments and the control group. Instead, recipients tended to increase their spending on essential needs, with food, housing, and transportation being the most notable expenses. Additionally, the payments helped cover health-related costs, such as braces and treatment for alcoholism; however, while the initial cash transfers reduced stress levels, many health benefits diminished after two years.

Sam Altman has advocated for universal basic income, especially in light of the ongoing changes in the labor market driven by advancements in artificial intelligence.

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