Jensen earned her bachelor's degree from Swarthmore College and Ph.D. from M.I.T. She joined the Hamilton College faculty in 1983. Jensen is co-author of Industrial Organization: Theory and Practice, a leading industrial organization textbook developed in part from experiences teaching students at the College. Her recent work investigates pedagogical questions arising in teaching industrial organization, the predictors of academic success in college and student course choice. Jensen teaches courses in industrial organization, antitrust and regulation, American economic history and microeconomic theory. She has twice been honored for her teaching, having been chosen as the Christian A. Johnson Excellence in Teaching Professor for 2011-2014 and receiving the Class of 1962 Outstanding Teaching Award in 2002.