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The results of the study suggest that the higher entrance requirement for new entrants and re-entrants reduced significantly the number of beneficiaries and the amount of total benefits paid in 1997 (by up to 7 percent).

The results also suggest that in 20 percent of the affected cases, the program change likely encouraged more weeks of employment. Therefore, the tightening of the entrance requirement for new entrants was effective, both as a cost-saving measure and in terms of encouraging a stronger employment attachment.

However, one area of concern is that a disproportional number of affected individuals live in lower income households or relied on social assistance. The Family Supplement under Bill C-12 is helpful to low-income individuals who qualify for benefits, but it does not offset the regressive nature of disqualifying low income new entrants.

A further concern is that the entrance requirement is uniform across all the economic regions, rather than be lower in high unemployment areas, as is the case with the entrance requirement for non-new entrants.