A recent $60 million social science study, funded by OpenAI, has revealed the positive impact of a $1,000-a-month universal basic income (UBI) on people's financial habits and entrepreneurial aspirations. The study shows the potential of UBI as a tool for funding business ideas and dispelling common concerns about such programs.
Key Findings
The UBI program led to:
- 5% increased interest in budgeting
- 8% improvement in preparing for long-term expenses
- 20 minutes more per month spent on managing finances
- 15% more consideration of returning to school
- 14% increased enrollment in education or job training programs by the final year
Impact on Underrepresented Groups
The impact of UBI was even more pronounced for certain groups. African American participants saw a 26% increase in starting or co-founding businesses, with 43% launching companies compared to 34% in the control group. Women also experienced a 15% increase, with 36% starting ventures compared to 31% in the control group.
Researchers noted that UBI served as an alternative to traditional business loans for African American entrepreneurs, who often face higher rejection rates, while also offering women flexibility to pursue their goals while managing caregiving duties.
Challenging UBI Doubts
The study challenges concerns about UBI's impact on motivation. Instead, the findings indicate that a guaranteed income can help people focus on their goals and pursue them more effectively. While UBI can stimulate entrepreneurial interest, additional support might be necessary to translate this interest into action at a broader level.
