Sam Altman, CEO of OpenAI, has financed the largest basic income study conducted in the United States to date. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line over a three-year period.
The study involved around 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. One group received $1,000 per month, while a control group was given $50.
Findings revealed that those receiving the larger payments experienced increased flexibility in job searching, allowing them to pursue employment that better matched their preferences. The study’s authors noted, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” While the cash recipients were more likely to look for jobs, they tended to be more selective in their choices.
One 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,” highlighting the opportunity to avoid low-quality jobs due to immediate financial needs. Another recipient noted that they accepted a lower-paying entry-level position in their desired field, which eventually led them to a six-figure salary after two years, saying, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”
The study also indicated no significant difference in employment levels between those who received larger payments and those in the control group. Recipients tended to use the funds primarily for essential needs, with food, housing, and transportation being the largest expenditures. The payments assisted recipients in covering health-related expenses, such as braces and treatment for alcoholism. Although the payments initially alleviated stress, many health benefits appears to diminish after two years.
Sam Altman has advocated for universal basic income, especially as artificial intelligence continues to transform the labor market and potentially displace certain jobs.
Note: A previous version of this article incorrectly credited the study to OpenAI instead of Sam Altman’s nonprofit organization, OpenResearch.