Abstract: Recent literature has aimed at evaluating human capital externalities by estimating the effect of human capital on wages at urban level. We argue that this methodology might not identify properly human capital spillovers. We consider a general equilibrium model based on JEL Classification: R0, J0 , I2. Acknowledgements: We thank Gilles Duranton for stimulating discussions. The views expressed in the paper are those of the authors and do not necessarily correspond to those of the respective organizations
