Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit, OpenResearch. This initiative involved providing unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study included about 3,000 participants, aged 21 to 40, from Texas and Illinois, all earning less than $30,000 annually. One-third of those involved received $1,000 monthly, while the control group received just $50.
The findings indicated that those receiving the larger monthly checks had greater flexibility in seeking employment that 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. Recipients were more likely to be searching for a job, but they were more selective.”
One participant shared that the cash transfers allowed them to build savings, enabling them to be choosy in their job search. They expressed, “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 participant mentioned that the cash support allowed them to accept a lower-paying 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.”
However, the study revealed no significant differences in employment rates between those who received the higher payments and the control group. The recipients primarily used the funds to cover basic necessities like food, housing, and transportation. The financial support also enabled them to access healthcare needs, including braces and treatment for alcoholism. Though the payments initially alleviated stress, many of the associated health benefits diminished after two years.
Altman has been an advocate for universal basic income, especially as artificial intelligence continues to impact the job market and displace certain positions.
A correction was made to clarify that the study was conducted by Sam Altman’s nonprofit OpenResearch, not OpenAI.