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discrimination is only attributed to hukou type, rather than to Hukou location. Note that there is one research conducted by Dong and Bowles (2002) who claim that there is no discrimination against rural migrants. While this literature is full of merits and a valuable resource to understand the hukou -based earning discrimination, their regression-based empirical analyses, including Song (2016) , suffer from several major limitations. First, no existing studies considered the fact that the hukou status may not be exogenous because outstanding rural–urban migrants