Sam Altman, CEO of OpenAI, funded the largest basic income study in the United States to date through his nonprofit, OpenResearch. The study provided unconditional cash payments to individuals living below the poverty line over a three-year period.
The research involved 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of the participants received $1,000 per month, while the remaining participants, who served as a control group, received $50.
Findings indicated that those receiving the higher payments had greater flexibility in job searching. 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 how the cash transfer allowed them to build savings, stating, “I’m in a position for once to be picky,” and emphasizing that they no longer had to accept undesirable jobs out of financial necessity.
Another recipient mentioned their ability to accept a lower-paying entry-level job in their desired field, which ultimately 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 study revealed no significant difference in overall employment rates between the recipients and the control group. However, recipients tended to increase spending on basic needs, such as food, housing, and transportation. The payments also assisted recipients with healthcare expenses, including braces and alcohol treatment. While the initial payments reduced stress levels, many of the health benefits diminished after two years.
Sam Altman advocates for universal basic income in the context of how artificial intelligence is transforming the labor market and displacing some jobs.
A correction to the initial report clarified that the study was conducted by Sam Altman’s nonprofit OpenResearch, not OpenAI.