Shalala began her teaching career as a political science professor at Baruch College (part of the City University of New York), where she also was a member of the American Federation of Teachers union. In 1972, Shalala became a professor of politics and education at Teachers College, Columbia University, a post she held until 1979. Shalala became the only woman on the Municipal Assistance Corporation, a group tasked with saving the city during the 1975 New York City fiscal crisis. Concurrently, from 1977 to 1980, she served as the assistant secretary for policy development and research at the U.S. Department of Housing and Urban Development during the Carter Administration.