NIT forces employers to keep wages competitive

("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)

Additionally, there was a finding by a Berkeley researcher which suggests that an NIT would force employers to bid up wages as it can make workers more selective when searching for employment. Thus, while an NIT can discourage work for certain individuals, it will incentivize firms to increase their wages without a government-driven price floor, such as the minimum wage. An NIT could provide $1.39 in benefits for every $1 government expenditure on this policy (Rothstein, 2009).