During the last two decades, there has been a significant growth in the share of faculty members at American colleges and universities that are employed in part-time or full-time non tenure-track positions. Our study is the first to address whether the increased usage of such faculty adversely affects undergraduate students' graduation rates. Using institutional level panel data from the College Board and other sources, our econometric analyses suggest that the increased usage of these faculty types does adversely affect graduation rates at 4-year colleges, with the largest impact on students being felt at the public master's level institutions. Abstract During the last two decades, there has been a significant growth in the share of faculty members at American colleges and universities that are employed in part-time or full-time non tenure-track positions. Our study is the first to address whether the increased usage of such faculty adversely affects undergraduate students' graduation rates. Using institutional level panel data from the College Board and other sources, our econometric analyses suggest that the increased usage of these faculty types does adversely affect graduation rates at 4-year colleges, with the largest impact on students being felt at the public master's level institutions.

This study uses panel data to examine the relationship between faculty employment and external R&D expenditures at research and doctoral institutions over a 15-year period of time. Not surprisingly, full-time faculty that are tenured or on tenure-tracks is the main category of faculty that generates external R&D funding. On the other hand, our results suggest that an increasing usage of part-time faculty, holding constant the institution's full-time faculty size boosts an institution's external R&D expenditures, probably through reducing teaching responsibilities for the full-time faculty. Increases in graduate student enrollments are associated with increases in external R&D expenditures. Finally, an institution's external R&D expenditures are significantly influenced by both the amount of its own institutionally financed research expenditures and the level of federal funding for research.

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