Gender differences in preferences for taking risk in college applications

•Examines the gender gap in university choice conditional on achievements.•Assembles a unique dataset from a centralized system for university applications.•Defines a last (reservation) choice to which students apply rather than retaking the exam.•Females are less willing to retake and more likely to choose lower ranked programs.•Gender differences in risk preferences in college applications have significant implications also for major choices.

College admissions in Turkey are based entirely on nationwide standardized test scores and standardized high school GPAs. Using detailed administrative data from the centralized system, I study the impact of gender differences in preferences on the allocation of students to colleges. Controlling for test score, high school GPA, and high school attended, I find that females are more likely to apply to lower-ranking universities, whereas males set a higher bar, revealing a higher option value for retaking the test and applying again next year. These differences in willingness to be unassigned are also found to have implications for major choices.