This paper investigates to what extent the returns to a PhD depend upon the region of birth and the place of work. We examine the career paths of eastern and western German PhD graduates and estimate the returns to obtaining a job suited to their skill level and with high wages. Our data set combines information on graduates and their place of birth with administrative data. We find that the place of work rather than the region of birth affects labor market outcomes. Due to lower mobility, eastern German graduates profit less from adequate jobs located in western Germany.