The object of this research is to assess the effects of Ontario’s new immigration policy on young non-permanent residents. In particular, it is to evaluate how the wage gap between young non-permanent residents and young Canadian citizens has changed in the labor market of Ontario from 2001 to 2006 to demonstrate influences of new policy. On November 21, 2005, the governments of Ontario and Canada signed the first Canada-Ontario immigration agreement that relaxed several requirements for temporary workers to apply for permanent residency. This paper selected data from the 2001 and 2006 population census to conduct a linear regression to analyze the wage gap and the effects of immigration policy. By using the difference-in-difference approach, this paper found that there was no significant positive effect of the new policy on the entry earnings of non-permanent residents in Ontario.