Exam Reward Structure, Gender Performance Gaps, and Labor Market Outcomes

We analyze how higher task rewards affect the gender performance gap using data from a selective Brazilian university's admission exam. Our data allow us to control for applicants' major-choice self-selection issues flexibly and to track applicants' labor market outcomes years later. We find that women's performance decreases relative to men's in higher-reward subjects due to differing exam strategies. Looking at future labor market outcomes, we find that performing well on higher-reward subjects positively relates to wages. However, our findings cast doubt on whether gender differences in prioritizing rewarding tasks in an exam environment can explain the gender wage gap.