RT Journal Article SR Electronic T1 High-Stakes Grades and Student Behavior JF Journal of Human Resources JO J Hum Resour FD University of Wisconsin Press SP 821 OP 849 DO 10.3368/jhr.56.3.0718-9620R2 VO 56 IS 3 A1 Ulrik Hvidman A1 Hans Henrik Sievertsen YR 2021 UL http://jhr.uwpress.org/content/56/3/821.abstract AB High-stakes exams carry important consequences for the prospects of reaching university. This study examines whether the incentives associated with exam grades affect educational investments. Exploiting a reform-induced recoding of high school students’ grade point averages, we identify the effect of highstakes grades on student behavior. The results show that students who were downgraded by the recoding performed better on subsequent assessments. The increase in academic performance in high school translated into an increased likelihood of university enrollment. As the recoding did not convey information about actual performance, these results emphasize that incentives are important in understanding students’ educational investments.