Do children make us happier?

We investigate the effects of having children at home on individual happiness. Contrary to much of the literature, we find effects that are positive, large and increasing in the number of children. These effects, however, are contingent on the individual's characteristics. Children make married people happier, but people who are separated, living as a couple or have never married and are not living as a couple are less happy with children. We also analyze the role of factors such as gender, age, income and education.