Is a popular innovation for increasing human capital in the teaching profession--competitive college scholarships for teachers--effective? The authors show that one large and long-standing merit-based scholarship program (a) attracts teacher candidates who have high academic qualifications; (b) yields graduates who teach lower performing students, although not as challenging as the students of other beginning teachers; (c) produces teachers who raise high school and third- through eighth-grade mathematics test scores more than other traditionally prepared teachers do; and (d) produces teachers who stay in public school classrooms for 5 years or more at higher rates than alternative entry or other traditionally prepared teachers. (Contains 5 tables, 1 figure, and 5 notes.)