What Can Be Learned from the World Happiness Index?
A view of Helsinki, the capital of Finland, which has been named the World’s Happiest Country for 7 straight years.
Where in the world is happiness most prevelant and are there any themes we can extrapolate as we look after the places in which we live?
Our team recently dove into the World Happiness Report and found several interesting learnings. For background, the report explores factors contributing to human wellbeing around the world. The study is a partnership of Gallup, the Oxford Wellbeing Research Centre, the UN Sustainable Development Solutions Network, and the WHR’s Editorial Board.
Here is what you should know from from the 2024 study.
The Top 10 Happiest Countries
The report ranks countries based on their happiness levels. Here's a look at the top 10:
Finland
Denmark
Iceland
Sweden
Israel
Netherlands
Norway
Luxembourg
Switzerland
Australia
Finland's Consistent Reign
One of the most striking findings is Finland's consistent ranking at the top. Finland has held the number one position for seven consecutive years. But what's behind this Nordic nation's success?
According to Business Finland, the country's high levels of happiness are attributed to "high levels of trust and freedom in its society - which research shows contributes to well-being and productivity." Finns tend to trust their neighbors, public officials, and their government, creating a strong social fabric that supports overall well-being.
The Nordic Paradox: Cold Climate, Warm Hearts
Interestingly, the report challenges the common assumption that warm, sunny weather equates to happiness. In fact, the five largest Nordic countries all rank in the top 7 happiest nations. Eight of the top 10 and 16 of the top 20 happiest countries are in generally cooler, northern climates.
This "Nordic paradox" suggests that factors such as social support, trust in institutions, and quality of governance may play a more significant role in happiness than climate.
Size and Happiness: Is Smaller Better?
When examining the demographics of the happiest countries, an interesting pattern emerges. Among the top 10, only the Netherlands and Australia have populations exceeding 15 million. Broadening our view to the top 20, we find that only Canada and the UK have more than 30 million inhabitants.
This trend suggests that smaller nations might have certain advantages when it comes to fostering citizen happiness. Perhaps smaller populations allow for more efficient governance, stronger community bonds, or more responsive public services.
Youth Happiness: A Shifting Landscape
The report also highlights some concerning trends in youth happiness. In North America and Western Europe, happiness levels among younger generations are declining. Conversely, Central and Eastern Europe, former Soviet territories, and East Asia are seeing an increase in youth happiness.
Globally, there's a lower level of happiness among people born since 1980. This generational shift in happiness deserves further exploration and may have significant implications for future social policies.
Happiness and Other Indices: Connecting the Dots
Cross-comparing the top 25 countries in the World Happiness Report with other global indices reveals some interesting correlations:
17 of the happiest countries also rank highly in the Tax Foundation's International Tax Competitiveness Index (specifically in the "individual tax rates" category).
16 of the happiest nations are among those with the highest cost of living, according to Numbeo's Cost of Living ranking.
20 of the top 25 happiest countries also appear in the Global Talent Competitiveness Index.
These correlations suggest that factors such as competitive tax systems, robust economies (as indicated by higher living costs), and the ability to attract and retain talent may contribute to overall national happiness.
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As we consider these findings, it's clear that happiness is not solely determined by the usual suspects of economic prosperity or favorable weather. Instead, it seems to be the result of a complex interplay of social trust, effective governance, economic competitiveness, and the ability to nurture and attract talent.
You can find more about the report by clicking here: https://worldhappiness.report/.
