new business cities stockholm sweden

Sweden has overtaken Norway to claim second place in the ranking. The Scandinavian country ranks top for quality of the environment, and above average in work-life balance, life satisfaction, health, and education.

The OECD has been searching for the key to happiness and well-being for nearly 15 years. A lead researcher with the organization, Romina Boarini, said the Better Life Index takes account of some traditional measures -- such as income and employment -- but tries to get to the heart of what makes people happy by including other factors.

Related: Best countries for working moms and dads

Swedes enjoy high household income and good job security. Sweden's worst indicator is personal safety. The report said 5.1% of people reported falling victim to assault over the previous 12 months, above the OECD average of 3.9%.

First published June 4, 2015: 10:09 AM ET

Partner Offers

Most Popular