This study is a continuation of Oshchepkov (2010), where it was shown that the rates of return to higher education, obtained by estimating mincer-type wage equations, vary significantly across regions-subjects of the Russian Federation.We try to explain the revealed differences. To this end, we investigate the connection between estimates of the rates of return and different regional characteristics. Our results show that the return to higher education is higher in less attractive regions. It is also positively associated with the rate of unemployment and public sector employment. We did not find significant correlation of the return to higher education with the «stock» of workers with higher education as well as with the level of regional economic development.