Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. This initiative partnered with researchers to provide unconditional cash payments to individuals living below the poverty line for a span of three years.
The study involved around 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of these participants received $1,000 each month, categorized as the recipients, while the control group received only $50.
Findings from the study indicated that those receiving the larger payments had greater flexibility in seeking jobs that suited their 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 save money and be more discerning in their job search, stating, “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 recipient mentioned they were able to accept a lower-paying entry-level job in a desired field, which eventually led to a six-figure salary within two years. They remarked, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”
The research revealed no significant difference in employment levels between the recipients and the control group. Recipients mainly increased their spending on essential needs, including food, housing, and transportation. The payments also enabled recipients to cover health-related expenses such as braces and addiction treatment. While the financial assistance initially alleviated stress, many health benefits appeared to diminish after two years.
Altman has been an advocate for universal basic income, especially in light of how artificial intelligence is changing the job market and displacing certain employment opportunities.
Correction: An earlier version of this article incorrectly identified the organization conducting the study. It was Sam Altman’s nonprofit, OpenResearch, not OpenAI.