15 Top Happiness Index Countries

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Can we measure happiness? Did you know there is a measure of happiness called the Happiness Index? How is happiness measured? What are the criteria for measuring happiness? Which countries have the highest happiness index? In this post, I will share 15 top countries with the highest happiness index. And share the criteria for happiness index. Happiness index is one of the key foundations for quality of life.

“The happiness of your life depends upon the quality of your thoughts.”

– Marcus Aurelius

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How is the Happiness Index Measured?

World Happiness Report 2020 defines the happiness index. They measure it by a metric named Life evaluation. Life evaluation has 6 factors as predictors:

  • GDP per capita
  • Social support
  • Healthy life expectancy
  • Freedom to make life choices
  • Generosity
  • Corruption

15 Top Happiness Index Countries

The Nordic countries comprising Denmark, Norway, Sweden, Finland, and Iceland have been rating consistently with the highest happiness index for several years. The World Happiness Report identifies 15 countries having highest happiness index:

The chart below shows the top 15 happiest countries. It also shows Nordic countries against the richest countries and the world. They measured the overall happiness index by a metric named Life evaluation. They derived it from the 6 factors: GDP per capita, Social Support, Health life expectancy, Freedom, Generosity, and Corruption.

15 Top Happiness Index Countries
Source World Happiness Report

What Makes the Nordic Countries the Happiest in the World?

So what makes the Nordic countries top the charts as compared to the richest countries and the world?

According to the World Happiness Report, following the explanations for Nordic countries to have the highest happiness index:

Dispelling Myths: Cold Weather, Small and, Homogeneous Countries, and Historic High Suicide Rates

First, the Nordic countries have predominantly long, dark, and cold winters. Studies find Nordic persons are happiest in the winters compared to the Spring times. So the harsh winters don’t seem to change the happiness of the people or make them gloomier.

Second, studies also argue that the Nordic nations are small and homogenous and that might be the reason that it is easier to maintain happiness compared to large countries with lots of diversity. But on the contrary, Nordic nations also have quite a lot of diversity driven by ethnic diversity and immigration. Interestingly, immigrants are also as happy as persons born in these countries.

Third, the suicide rate in Nordic countries, especially Finland, was pretty high in the 1970s and 1980s but it has reduced dramatically over the years and is currently close to the European average.

State Welfare

The Nordic countries have one of the best state welfare in the world. The state essentially takes care of its residents completely. These include free education, including university education, free healthcare, unemployment benefits, work-life balance benefits like maternity/ paternity leaves. Its residents don’t need to worry about many aspects of their life that most Americans worry about the most. The income tax rates in the Nordic countries are for sure one of the highest in the world, but we can well justify it given the lifetime security the state provides to its residents.

Institutional Quality

Quality of government is another driver for the high life satisfaction of Nordic countries. Countries that have better institutional quality provide better satisfaction with life satisfaction.

Government quality has primarily two dimensions: democratic quality and delivery quality. Democratic quality pertains to access to power, including the ability to take part in selecting the government, freedom, and political stability. Delivery quality pertains to the exercise of power, including a rule of law and effective governance.

Income Equality

The Nordic nations have very low-income inequality. Inequality essentially has an inverse relationship to happiness. European societies are more equal compared to other developed countries. There are much fewer extremes of wealth or poverty. This helps maintain more harmony in society and gives a sense of happiness for all its residents.

Freedom to Make Life Choices

With a strong social support system, residents in Nordic countries can truly have the freedom to make life choices. Say if one doesn’t have to worry about high education expense or student mortgages, high healthcare cost, unemployment risks, and work-life-balance, the residents for those countries can choose to do jobs that provide true self-fulfillment. They have more freedom to make choices in the work they do. Their day-to-day needs don’t drive making life choices, but their genuine passion and calling drive this. This also provides them with work-life balance and nurture their relationships, which sometimes get strained by financial constraints and the materialistic rat race.

Trust and Social Cohesion

Trust and social cohesion are virtues difficult to find in many countries, but Nordic countries truly exemplify these virtues. Social law and order, financial stability, safety and security, and social security enable its residents to trust each other and build a cohesive society.

Conclusion on 15 Top Happiness Index Countries

The top happiness index countries in the world are the Nordic countries which have excellent social support system in terms of public education, health and unemployment benefits. So theirs residents do not have to stress over money to live a decent quality of life. These countries also score lowest on corruption, as measured my corruption perception index by Transparency International. Therefore, its residents can focus on making life choices that give them genuine satisfaction and happiness. A sense of accomplishment and fulfillment instead of the rat race. What do you think is the reason for high happiness index in the Nordic countries? Do you agree with the above? Thoughts?

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