Between 1967 and 1988, Jensen taught finance and business administration at the William E. Simon Graduate School of Business Administration of the University of Rochester, culminating in his 1984-1988 appointment as the LaClare Professor of Finance and Business Administration. From 1977 to 1988, he served as the founding director of the University's Managerial Economics Research Center. He joined the Harvard Business School on a half-time appointment in 1985 (dividing his time between Rochester and Harvard) before taking a full-time appointment at the latter institution in 1988. He cofounded the Social Science Research Network in 1994. In 2000, Jensen retired from academic work, retaining emeritus status at Harvard, upon assuming his position at Monitor.