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This paper studies the effects of teachers' stereotypical assessments of boys and girls on students' long-term outcomes, including high school graduation, college attendance, and formal sector employment. I measure teachers' gender stereotypical grading based on preconceptions about boys' aptitude in math and science and girls' aptitude in communicating and verbal skills by analyzing novel data on teachers' responses to the Implicit Association Test (IAT) and differences in gender gaps between teacher-assigned and blindly graded tests. To collect IAT scores on a national scale, I developed a large-scale educational program accessible to teachers and students in Peruvian public schools. This analysis provides evidence that teachers' gender stereotypes are reflected in student evaluations: math teachers with stronger stereotypes associating boys with scientific disciplines award male students with higher test scores compared to blindly-graded test scores. In contrast, language arts teachers who stereotypically associate females with humanities-based disciplines give female students higher grades. Using graduation, college enrollment, and matched employer-employee data on 1.7 million public high school students expected to graduate between 2015 and 2019, I find that female students who are placed with teachers who use more stereotypical grading practices are less likely to graduate from high school and apply to college than male students. In comparison to their male counterparts, female high school graduates whose teachers employ more stereotypical grading practices are less likely to be employed in the formal sector and have fewer paid working hours. Furthermore, exposure to teachers with more stereotypical grading practices reduces women's monthly earnings, thereby widening the gender pay gap.