He taught at Iowa State College from 1930 to 1943. He left Iowa State in the wake of the famous "oleomargarine controversy", and he served as the chair of economics at the University of Chicago from 1946 to 1961. He became President of the American Economic Association in 1960. He retired in 1967 though he remained active at the University of Chicago into his 90s. Shortly after his move to Chicago, Schultz attracted his former student, D. Gale Johnson to the department. Their research in farm and agricultural economics was widely influential and attracted funding from the Rockefeller Foundation to the agricultural economics program at the University. Among the graduate students and faculty affiliated with the pair in the 1940s and 1950s were Clifford Hardin, Zvi Griliches, Marc Nerlove, and George S. Tolley. In 1979, Schultz's was awarded the Nobel Prize in Economics for his work in human capital theory and economic development.