What Contributes to the Gender Gap? A Blinder–Oaxaca Decomposition Analysis of Hidden Workers in Australia

(1) Hidden workers include those who are unemployed or underemployed or discouraged workers. This study analyses the probabilities of becoming a hidden worker between males and females in three age groups (youth, young adults, and mid-life) and identifies the extent to which these factors explain the gender gap among hidden workers in Australia. (2) Using the Oaxaca–Blinder decomposition approach, this study aims to contribute to the discussion by highlighting the impact of gender on the hidden worker population, further illustrating how the explained and unexplained impacts on hidden workers differ between the gender groups. (3) Results: Age not only raises the likelihood of being a hidden worker in both gender groups but also contributes to the widening gender gap among hidden workers, especially those in the child-rearing stage of their life. Human capital, including education, health endowment, and social capital, is negatively associated with the likelihood of being a hidden worker and reduces the gender gap. Childcare responsibilities and other care duties are associated with a greater likelihood of being a hidden worker for females and are among the greatest contributors to the gender gap. Local resources are associated with the likelihood of being a hidden worker and widen the gender gap within the 45–64-year old group. (4) Conclusions: The gender gap among hidden workers is widened by care responsibilities and locally available socio-economic resources. On the other hand, it is narrowed by education, individual health endowment, and social capital. The findings of this study corroborate the fact that a wide extent of the gender gap among hidden workers in Australia is socially and politically produced and is thus potentially avoidable through public policy. Greater attention from researchers and policy makers regarding hidden workers should be devoted to reducing this gender gap to prevent further social implications.