Here's what a Sam Altman-backed basic income experiment found
The results of one of the largest and most comprehensive experiments in basic income are now out.
A groundbreaking study on basic income, supported by OpenAI founder Sam Altman, has revealed intriguing insights into the impact of guaranteed income on low-income individuals. The study, which is among the most extensive and comprehensive of its kind, examined various aspects of participants' lives, including health, spending habits, employment, and relocation ability, when provided with unconditional cash transfers.
Altman's interest in this topic dates back to 2016 when he published a blog post on the Y Combinator site, expressing his intention to fund research on how people behave when given free cash. He questioned whether individuals would become unproductive or pursue creative endeavors and sought to understand the impact of such financial freedom on happiness and fulfillment. With OpenAI's recent development of ChatGPT, which has sparked discussions about job displacement, Altman's perspective on technology's role in eliminating traditional jobs and the potential need for universal basic income in the future adds another layer to the conversation.
The OpenResearch Unconditional Cash Study provided 3,000 participants in Illinois and Texas with a significant sum of $1,000 per month for three years, starting in 2020. This amount boosted recipients' incomes by 40%, targeting individuals at least 300% below the federal poverty line with average incomes of less than $29,000. A control group of 2,000 participants received $50 monthly as a token of appreciation for their involvement in the study.
One notable finding was that basic income recipients spent their additional money on essential needs such as rent, transportation, and food. This indicates that the extra income directly improved their ability to cover basic necessities. Researchers also examined the impact of the cash transfers on recipients' work habits and job types, discovering a slight decrease in work hours. Recipients of the cash transfers worked approximately 1.3 to 1.4 hours less each week compared to the control group, choosing to use those hours for leisure activities instead.
Eva Vivalt, one of the study's principal investigators and an assistant professor of economics at the University of Toronto, doesn't view this reduction in work hours as a negative outcome. On the contrary, she interprets it as an indication that people value having more leisure time, which can positively contribute to their overall well-being and autonomy. The study also revealed that participants did not ultimately earn higher wages by taking on better-paid work, contrary to researchers' expectations.
Interestingly, the study showed an uptick in hospitalizations and emergency department visits among basic income recipients. In the last year, cash transfer recipients experienced a 26% increase in hospitalizations and a 10% higher probability of visiting an emergency department compared to the control group. This finding highlights the positive impact of basic income on healthcare access and utilization, especially for those who may have previously struggled to afford care.
As researchers continue to analyze the data and draw conclusions, other cities across the US are also experimenting with the concept of basic income, contributing to a growing body of knowledge and understanding of its potential benefits and implications. The study's insights provide valuable insights into how guaranteed income can shape people's lives and inform policy discussions around income support and social welfare.
Altman's interest in this topic dates back to 2016 when he published a blog post on the Y Combinator site, expressing his intention to fund research on how people behave when given free cash. He questioned whether individuals would become unproductive or pursue creative endeavors and sought to understand the impact of such financial freedom on happiness and fulfillment. With OpenAI's recent development of ChatGPT, which has sparked discussions about job displacement, Altman's perspective on technology's role in eliminating traditional jobs and the potential need for universal basic income in the future adds another layer to the conversation.
The OpenResearch Unconditional Cash Study provided 3,000 participants in Illinois and Texas with a significant sum of $1,000 per month for three years, starting in 2020. This amount boosted recipients' incomes by 40%, targeting individuals at least 300% below the federal poverty line with average incomes of less than $29,000. A control group of 2,000 participants received $50 monthly as a token of appreciation for their involvement in the study.
One notable finding was that basic income recipients spent their additional money on essential needs such as rent, transportation, and food. This indicates that the extra income directly improved their ability to cover basic necessities. Researchers also examined the impact of the cash transfers on recipients' work habits and job types, discovering a slight decrease in work hours. Recipients of the cash transfers worked approximately 1.3 to 1.4 hours less each week compared to the control group, choosing to use those hours for leisure activities instead.
Eva Vivalt, one of the study's principal investigators and an assistant professor of economics at the University of Toronto, doesn't view this reduction in work hours as a negative outcome. On the contrary, she interprets it as an indication that people value having more leisure time, which can positively contribute to their overall well-being and autonomy. The study also revealed that participants did not ultimately earn higher wages by taking on better-paid work, contrary to researchers' expectations.
Interestingly, the study showed an uptick in hospitalizations and emergency department visits among basic income recipients. In the last year, cash transfer recipients experienced a 26% increase in hospitalizations and a 10% higher probability of visiting an emergency department compared to the control group. This finding highlights the positive impact of basic income on healthcare access and utilization, especially for those who may have previously struggled to afford care.
As researchers continue to analyze the data and draw conclusions, other cities across the US are also experimenting with the concept of basic income, contributing to a growing body of knowledge and understanding of its potential benefits and implications. The study's insights provide valuable insights into how guaranteed income can shape people's lives and inform policy discussions around income support and social welfare.