Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States through his nonprofit, OpenResearch. In collaboration with researchers, OpenResearch provided unconditional cash payments to individuals living below the poverty line for three years.
In this study, 3,000 people aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually, participated. One-third of the participants received $1,000 per month, while the remaining participants in the control group got $50 per month.
The findings revealed that those receiving the larger payments had greater flexibility in their job search, allowing them to pursue employment that aligned with their personal goals and values. “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,” the study’s authors noted.
One participant shared that the cash transfers enabled them to save money and be selective about their job choices. “I don’t have to take a lousy job just because I need income right now. I have the opportunity to hold out and try and find the right fit,” they said. Another participant mentioned that the cash assistance allowed them to take a lower-paying entry-level position in a desired field, eventually leading to a six-figure salary within two years.
The study observed that employment levels did not significantly differ between those who received larger payments and the control group. Participants primarily spent the cash on basic needs such as food, housing, and transportation. The payments also helped cover health-related expenses, including braces and alcoholism treatment. Initial health benefits from the payments diminished after two years, although the recipients initially experienced reduced stress.
Altman is a supporter of universal basic income, especially as artificial intelligence transforms the labor market and potentially displaces certain jobs.