This research examines the extent to which labor regulatory context matters for entrepreneurial
activity under a gender perspective, using institutional economics and feminist theories as the
analytical framework. We conduct a panel data analysis for 86 countries during the period 2004-
2018 by differentiating between high-income and developing economies. Our findings
highlight that while the links between labor regulation and entrepreneurial activity seem
negligible in high-income economies, in developing economies labor flexibility is closely
associated with female entrepreneurship. However, unlike the market-oriented view on the
positive association between labor market flexibility and entrepreneurship, our results point out
that in these economies more flexible labor regulation is related to lower early-stage female
entrepreneurial activity, even though this relationship tends to vanish as the level of economic
development of the country increases. This study contributes theoretically, helping to advance
the analysis of gender differences in entrepreneurial activity from an institutional approach, and
practically, providing evidence to policy makers on possible gender differences in the
application of country-level labor market regulation in terms of entrepreneurial activity.
