College faculty purchasing power was at an all-time high in 1972-73, but then dropped during the 1970s. In the early 1980s, it began to rise and then leveled off in the past few years with the onset of another drop from the 1988-89 high. Twenty years of full-time college and university faculty members' salaries are compared with annual measures of institutional and economic activity to identify any correlations. Salaries are regarded separately for gender, public and private sectors, and for assistant professors, with data from the National Center for Education Statistics higher education reports (salary data are missing for only a few years). Contrary to expectation, faculty salary did not increase consistently with institutional income. Private college salaries are more sensitive to changes in institutional income than are public college salaries, perhaps because of the importance of private giving and tuition. College and university income is related to the gross national product. Overall, there has been a lack of improvement in female faculty salaries compared with those of males. In general, the belief that if colleges get more money, faculty will get raises was not supported. Colleges with more money are more likely to expand programs, services, and new hiring. Four tables and 12 charts present study findings. (Contains 5 references.) (SLD)