Paulson has taught and held various administrative positions at several universities in the United States, including the University of Illinois from 1959 to 1963 and Rice University from 1963 to 1967. He was the Chairman of the Johns Hopkins University English Department from 1967 to 1975. From 1975 to 1984 he was a professor at Yale University and served as the Director of Graduate Studies in the English Department from 1976 to 1983 and the Director of the British Studies Program from 1976 to 1984.