Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. The initiative aimed to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study involved around 3,000 participants between the ages of 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. Of these participants, one-third received $1,000 per month, while the remainder, serving as the control group, received $50.
Findings from the research indicated that those receiving the larger payments had greater flexibility in their job search, allowing them to pursue positions that better matched their desires and aspirations. The authors of the study noted that cash payments enhance individuals’ ability to make employment choices aligned with their personal circumstances and values. Recipients were more likely to be actively job hunting but tended to be more selective in their choices.
One participant shared their experience, stating, “Because of the cash transfer and being able to build up my savings, I’m finally in a position to be picky. I don’t have to take a job just to earn income immediately; I can wait for the right fit.” Another recipient mentioned their ability to accept a lower-paying entry-level role in a field of interest, which eventually led to a six-figure salary within two years, saying, “Without the cash transfers, I couldn’t have taken that pay cut.”
The study revealed no significant differences in overall employment rates between the larger payment recipients and the control group. The beneficiaries primarily increased their expenditures on essential needs like food, housing, and transportation. Additionally, the payments enabled some to manage health-related expenses, including braces and alcoholism treatment. While the initial cash influx reduced stress levels, many of the health benefits diminished after two years.
Sam Altman advocates for universal basic income as a solution to the changing labor landscape, driven by advancements in artificial intelligence that can displace certain jobs.