This publication reviews and analyzes the research on issues affecting faculty supply and demand in higher education and looks at how recent research can assess future trends. An introduction describes many researchers' prediction that three trends will soon create a faculty shortage: (1) increasing faculty retirements based on extensive hiring during 1960s and 1970s; (2) increasing college enrollments; and (3) declining numbers of doctoral recipients interested in a faculty career. The analysis then looks at factors affecting the demand side including changing educational programs; data on student enrollments; and expected replacement needs due to faculty attrition through mobility, death inservice, or retirement. This section concludes that intra-institutional movement as well as attrition are key areas where institutions need more information on faculty decisions to move from one college to another or to leave academe for other work. On the supply side the paper examines graduate school enrollments for doctoral degrees; labor-market competition from noneducational employers; and faculty recruitment. Finally the analysis examines projections for supply and demand based on the data and the assumptions involved. A final section concludes that the analysis raises many questions about the underlying quality of the available data and its collection. Contains 49 references. (JB).