State policy makers are constantly looking for ways to improve teacher quality. An oft tried method is to increase the rigor of licensure exams. This study utilizes state administrative data from Arkansas to determine whether raising the cut-scores on licensure exams would improve the quality of the teacher workforce. In addition, the study explores the trade-offs of such a policy decision. It is concluded that raising the required passing score on the Praxis II would increase the quality of the teacher workforce, as measured by value-added student achievement. This change, however, would be accompanied with an important trade-off as it would reduce the number of minority teachers and potentially lead to negative outcomes in disadvantaged schools.