Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for a span of three years.
The study involved 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 the participants received monthly payments of $1,000, while the remaining participants, who formed the control group, were given $50.
Findings from the study indicated that those receiving the larger cash payments experienced greater flexibility in pursuing jobs that aligned with their preferences. The authors 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, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky. I don’t have to take a crappy job just because I need income right now. I have the opportunity to hold out and find the right fit.” Another recipient explained that the financial support enabled them to accept a lower-paying entry-level position in their desired field, eventually leading to a six-figure salary. They remarked, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study showed no significant difference in employment rates between the recipients and the control group, with recipients primarily increasing their spending on essential needs such as food, housing, and transportation. Additionally, the payments assisted recipients in addressing health-related costs like braces and treatment for alcoholism. While the financial support initially alleviated stress, many of the health benefits diminished after two years.
Altman has advocated for universal basic income as artificial intelligence continues to transform the labor market and displace certain jobs.