Sentence:  The second reason for being concerned with the dichotomy between faculty members who are part of the `` in-group '' that owns and operates the institution and those who <WSD>are</WSD> merely paid employees , is , therefore , the baneful effect on the caliber of the teaching itself . 
Meaning of the word marked with <WSD> tags:  have the quality of being; (copula, used with an adjective or a predicate noun)