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This study provides the first causal estimates of the effects of migrant school segregation on the academic achievement of local and migrant students in developing countries. Using a nationally representative school-based panel data from China, this study reveals that migrant concentration in schools influences the academic performance of both local and migrant students. Local students are negatively impacted by exposure to migrant students from rural areas. For migrant students, adverse effects stem from the concentration with their own migrant group. The effects above are also highly nonlinear. Those results have important institutional implications for Chinese and international contexts.