While stark inequality fueled the rankings for the unhappiest countries in the report provided by the Sustainable Development Solutions Network (SDSN), an international panel of experts brought together by the United Nations, many at the top of the list of 156 places are considered predominantly homogeneous countries with strong safety nets.
Here's a look at the top 20 happiest countries on the planet.
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No. 20 - Luxembourg
Luxembourg came in at 20th on the World Happiness Report list.
Jeffrey Sachs from Columbia University, one of those behind the report, says that happiness and well-being should be on every nation's agenda.
"Human well-being should be nurtured through a holistic approach that combines economic, social and environmental objectives," he said in a statement before the World Happiness Report 2016 was officially presented in Rome on March 16, 2016.
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No. 19 - Ireland
Ireland ranked no. 19.
Several factors are taken into account from GDP per capita, social support, healthy life expectancy, freedom, generosity, perception of corruption.
According to the report, dystopia "is an imaginary country that has the world's least-happy people." The concept is used to provide a benchmark for comparison.
No. 18 - Belgium
Belgium came in at no. 18.
The rankings were determined with the help of responses to a global Gallup poll. People were asked evaluate their quality of life on a scale of 1 to 10.
No. 17 - Brazil
Brazil known for its climate and beaches came in at no. 17.
No. 16 - Germany
Germany landed on the list in 16th place.
No. 15 - Puerto Rico
The Commonwealth of Puerto Rico, a U.S. territory, came in at no. 15.
No. 14 - Costa Rica
The island nation of Costa Rica garnered the no. 14 spot on the list.
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No. 13 - United States
The U.S. moved up two spots on the list from 15th to 13th place.
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No. 12 - Austria
Austria is in 12th place.
No. 11 - Israel
Israel is 11th on the list.
No. 10 - Sweden
Sweden is the 10th happiest nation.
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No. 9 - Australia
Australia came in at ninth place.
No. 8 - New Zealand
New Zealand is ranked no. 8.
No. 7 - Netherlands
Holland is the seventh happiest country.
No. 6 - Canada
Canada came in the sixth happiest country.
No. 5 - Finland
Finland is the fifth happiest nation to live in.
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No. 4. Norway
Norway took the fourth spot on the list.
No. 3 - Iceland
Iceland claimed the third place ranking.
No. 2 - Switzerland
Switzerland dropped from first place to second.
No. 1 - Denmark
Denmark regained the top ranking as the world's happiest place on the planet after briefly relinquishing the title in 2015 to Switzerland. The land of the Danes was ranked no. 1 in 2012 and 2013.
Egalitarian Denmark, where women hold 43 percent of top jobs in the public sector, is known for its extensive and generous cradle-to-grave welfare.
Few complain about the high taxes as in return they benefit from a health care system where everybody has free access to a general practitioner and hospitals. Taxes also pay for schools and universities, and students are given monthly grants for up to seven years.