"I'm always a happy person," says Nina Nielsen, 24, roaming a bustling street with her mother and friends in Denmark's capital of Copenhagen. In more than one study (including a 2009 report from Paris-based Organisation for Economic Co-Operation and Development), residents of Denmark have been designated the happiest people in the world. What's their secret? A well-balanced lifestyle. A positive outlook, dedication to exercise (55% of Copenhagen residents ride bikes to work or school), government-funded health care and higher education, close family ties and a love of socializing. Though there is crime, and income tax can take away half of one's paycheck, the overall morale is high. "We are happy," says Jette, a mid-aged mother and energetic dental assistant who hosts tourists in her spare time. Her daughter Cecille chimes in, "We get money for going to school when we turn 18."