Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. The initiative involved researchers providing unconditional cash payments to individuals living below the poverty line for a three-year period.
The study included approximately 3,000 participants aged between 21 and 40, residing in Texas and Illinois, all earning less than $30,000 annually. Of those involved, one-third received $1,000 monthly (the recipients), while others in the control group received $50.
Results indicated that those receiving the larger cash amounts had greater flexibility in job searching, allowing them to pursue positions that better align with their personal goals and circumstances. The study’s authors noted that “cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” Recipients were not only more likely to seek employment but also to be more discerning in their choices.
A participant shared, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky,” emphasizing that they no longer felt pressured to accept unsatisfactory jobs due to immediate financial needs. Another recipient reported that they could accept a lower-paying entry-level role in a desired field, ultimately leading to a six-figure salary within two years. “If I didn’t have the cash transfers there is no way I could have taken that pay cut,” they acknowledged.
The study revealed no significant differences in employment levels between the larger payment recipients and the control group. Recipients primarily used the additional funds to meet essential needs, with food, housing, and transportation being the main expenditures. The cash assistance also facilitated access to important health services, such as braces and treatment for alcoholism. However, while the payments initially alleviated stress, many of the associated health benefits diminished over time.
Sam Altman advocates for universal basic income as a response to the economic shifts brought about by artificial intelligence, which may displace certain jobs.