Location quotient (A2 only)

Overview

What the quotient compares, what values of exactly 1, above 1 and below 1 each tell you about a region, and why it says more than a raw employment figure.

What you need to know

Answer each one before you reveal it.

Questions from this subtopic

Each one with the model answer underneath.

1. 1

   What is a location quotient, and at which level of the course is it required?

   Model answer

   A location quotient is a ratio that compares the share of a region's total employment found in one industry with the share of the national total employment found in that same industry. It expresses the region's concentration in that activity relative to the country as a whole, in a single figure. Location quotient is required only at A2, alongside chi-squared; AS students are not examined on it.

2. 2

   What does a location quotient of exactly 1 tell you?

   Model answer

   It tells you the region has precisely the same share of its workforce in that industry as the nation does - the region is neither specialised in the activity nor short of it, and the industry is represented there in the average, expected amount. Values are always read against this benchmark of 1. This measure is an A2 requirement.

3. 3

   What does a location quotient above 1 tell you about a region?

   Model answer

   It tells you the industry is over-represented in that region compared with the national picture: a greater proportion of the region's workforce is employed in it than in the country as a whole, so the region is relatively specialised in that activity and probably exports the product or service beyond its own boundaries. A quotient of 2.0 means the region's share is twice the national share. Location quotient is examined at A2 only.

4. 4

   What does a location quotient below 1 tell you?

   Model answer

   It tells you the industry is under-represented in that region: a smaller proportion of its workforce is employed in the activity than in the nation as a whole, so the region is relatively poorly provided with it and is likely to depend on other regions for that product or service. A quotient of 0.5 means the region's share is half the national share. As with all location quotient work, this belongs to A2.

5. 5

   A region has 12 per cent of its workforce in manufacturing while the national figure is 6 per cent. What is the location quotient, and what does it mean?

   Model answer

   The quotient is 12 divided by 6, which is 2.0. That means manufacturing employment is twice as concentrated in this region as it is nationally, so the region is strongly specialised in manufacturing - a pattern typical of an old industrial area or one that has attracted inward investment in production. It does not mean the region has a large manufacturing sector in absolute terms; a small region can return a high quotient on modest numbers. Interpreting quotients in this way is A2 content.

6. 6

   What is a location quotient used for in geography?

   Model answer

   It is used to identify regional specialisation and to map it - picking out which regions depend on which industries, showing where an activity is concentrated, and comparing regions on a consistent basis regardless of their size. It is used to trace industrial decline and growth over time by recalculating the quotient for successive dates, to identify areas vulnerable to the collapse of a single industry, and to support decisions about where regional aid or investment should be directed. This technique is required at A2 only.

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