The Impact of Basic Income on Recipients: A Comprehensive Study
A recent study on basic income, funded by OpenAI Founder Sam Altman, explored the effects of providing low-income earners with a guaranteed payday, no strings attached. The study, one of the largest and most thorough of its kind, delved into various aspects of recipients’ lives, such as health, spending habits, employment, and mobility.
Altman’s interest in funding this research stemmed from his belief that giving people free cash could potentially lead to them working slightly less, thus allowing them more time for leisure activities. In his initial announcement of the research funding in 2016, Altman raised questions about how individuals would behave when provided with unconditional cash, pondering whether they would engage in productive activities or simply indulge in leisurely pursuits.
Key Findings from the Study
The study, known as OpenResearch’s Unconditional Cash Study, involved 3,000 participants in Illinois and Texas who received $1,000 per month for three years, starting in 2020. The average income of these cash recipients was less than 300 percent of the federal poverty level. In comparison, a control group of 2,000 participants received monthly donations of $50.
The research revealed that basic income recipients tended to spend more of their extra income on essential needs like rent, transportation, and food. Additionally, those who received cash transfers worked 1.3 to 1.4 hours less per week than individuals in the control group, opting to use the additional time for leisure pursuits.
Impact on Work Hours and Health
Despite the slight decline in working hours observed among cash transfer recipients, lead researcher Eva Vivalt highlighted that this reduction was not necessarily a negative outcome. She emphasized the importance of autonomy and well-being, stating that the ability to choose how to spend one’s time can lead to increased happiness and overall positive outcomes.
Moreover, the study indicated that basic income recipients increased their spending on health care services, leading to a rise in hospitalizations and emergency room visits. While some had predicted that participants would eventually secure higher-paying jobs as a result of the financial cushion provided by basic income, this expectation did not materialize.
In conclusion, the study’s results underscore the potential benefits of basic income in providing individuals with more autonomy and improving their overall well-being. However, further research and experimentation are necessary to fully understand the long-term impacts of such initiatives.
