Background: This paper aims at explaining the gender wage gap in the labor market from the perspective of leisure participation patterns between men and women. The traditional view is that time and effort spent in childbearing activities are the major sources of gender wage gap. Women, particularly in Chinese society, are the major career of children and share a large portion of housework, thus lacking time for the accumulation of human capital. This directly affects women’s employment status in the labor market as well as wage gaps with men. Methods: This study empirically examines the within-job wage differences between men and women in the same occupation and establishment in relationship to their leisure participation patterns. Data were collected via time diary survey from “blue-collar” employees of a Chinese factory, producing parts for cars. Results: The results showed that differences of time allocation in social time and passive leisure time between men and women contribute to gender wage gap. The study also uncovered the hidden gender discrimination in a male-dominated society. Conclusion: This study calls for institutional arrangements by the Chinese government to acknowledge women’s need and rights in workplace.