Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States through his nonprofit, OpenResearch. This study aimed to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
The research involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of the participants received $1,000 each month, referred to as the recipients, while the remaining participants made up the control group with monthly payments of $50.
The findings indicated that recipients of the larger payments had greater flexibility in job searching, allowing them to pursue opportunities that aligned with their personal goals and values. 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 not only searched for jobs but also adopted a more selective approach.
One participant shared that the cash transfer enabled them to save money, allowing them to be more discerning in their job search, stating, “I don’t have to take a crappy job just because I need income right now.” Another recipient mentioned taking a lower-paying entry-level job in their desired field, which ultimately led to a six-figure salary within two years, emphasizing that the cash transfers made that transition possible.
While the study found that there was no significant difference in overall employment rates between those who received the larger payments and the control group, it revealed that recipients primarily used the funds for essential expenses. The major areas of spending included food, housing, and transportation, with some payments also benefiting health-related needs. Although the payments initially alleviated stress, many of the health benefits diminished after two years.
Sam Altman has been an advocate for universal basic income, especially as the rise of artificial intelligence continues to impact the labor market and displace certain jobs.
In a clarification, it was noted that the study was conducted by Sam Altman’s nonprofit, OpenResearch, rather than OpenAI.