Researchers in Canada found that NIT increases individual productivity and consumption

("What is an Alternative to the Minimum Wage in Canada?: A Comprehensive Literature Review of Price Floors and Welfare Systems in Canada", International Journal of Policy Sciences and Law (IJPSL), https://ijpsl.in/wp-content/uploads/2022/06/What-is-an-Alternative-to-the-Minimum-Wage-in-Canada-A-Comprehensive-Literature-Review-of-Price-Floors-and-Welfare-Systems-in-Canada-merged.pdf)

Some of these studies assert that the minimum wage can negatively impact our economy, particularly in Canada. For example, firms would be more reluctant to hire new workers, impacting their productivity levels. One study, however, proposes that the Negative Income Tax can be a plausible and feasible solution to a price floor like the minimum wage. There was even evidence that an NIT could increase work activity and productivity in Manitoba, contrary to the initial viewpoint that suggested an NIT would reduce worker productivity. The researchers could discern the relationship between an NIT and productivity for welfare participant groups, which amounted to a 35% increase in hours worked, so there was a positive labour response (Riddell & Riddell, 2021). Furthermore, an NIT can eliminate poverty, which will improve Canada's economy. Lastly, through various quantitative exercises, the data suggest that the annual individual consumption rate would increase by an average of 2.1% (Lopez-Daneri, 2016). Therefore, the argument remains consistent. Accordingly, the authorbelieves that all nations worldwide should seriously evaluate the positive impacts of an NIT and use it as an alternative to the minimum wage. One of the limitations of this particular literature review is that there needs to be additional research regarding the NIT worldwide. However, COVID-19 prompted numerous governments to implement basic income policies, so this should incentivize economists to analyze the effects of basic income policies in both the short and long run.