Sam Altman, the CEO of OpenAI, supported 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 over a three-year period.
The study included approximately 3,000 participants aged 21 to 40 from Texas and Illinois, each earning less than $30,000 annually. One-third of these participants received $1,000 per month, while the remaining individuals received $50 as a control group.
Findings from the study indicated that those who received the larger payments had greater flexibility to pursue job opportunities that matched their preferences. The authors noted that cash payments enhanced individuals’ ability to make employment choices aligned with their personal circumstances, goals, and values, with recipients more likely to search for jobs but also more selective in their choices.
One participant remarked that the cash transfers allowed them to accumulate savings and be choosier about employment, 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 taking a lower-paying entry-level position in their desired field, which eventually led to a six-figure salary within two years, stating that without the cash transfers, they would not have been able to accept the pay cut.
The study revealed no significant differences in employment rates between those receiving larger payments and those in the control group. The increased income primarily led to higher spending on basic necessities, with key expenses including food, housing, and transportation. Additionally, the payments helped recipients address health-related costs, such as braces and treatments for alcoholism. While the payments initially alleviated stress, many of the health benefits diminished after two years.
Sam Altman has advocated for the concept of universal basic income, especially as artificial intelligence continues to transform the labor market and displace certain jobs.
Note: An earlier version of the information incorrectly identified the study’s conducting organization. It was Sam Altman’s nonprofit OpenResearch, not OpenAI.