Gender differences in employment rates in later life, although still substantial, have narrowed dramatically in the past four decades. The authors hypothesize that some of the gender variation in employment rates results from gendered differences in the demand for labor independent of individuals’ characteristics. The authors use multilevel models to investigate variation across local-area labor markets in gender differences in employment among 56- to 66-year-olds. The demand for female labor is measured as the degree to which the occupational structure of a local labor market is skewed toward typically female occupations. Areas with relatively more female occupations have lower gender differentials in full-time employment than areas where occupations are overwhelmingly male. This would suggest that some of the convergence in employment rates among the elderly in the past half century might be traced to the larger historical shift from traditionally male industrial employment to more typically female service and office employment.