Family SES is a critical mechanism for human capital development (Hill et al., 2001). According to economic hardship theory, a disruptive event such as parental divorce is often associated with a reduction in financial resources and a lower SES (e.g. Amato and Sobolewski, 2001). Socioeconomic deprivation has a negative effect on human capital, since social position is viewed as a macro-level factor that impacts family (micro) conditions, which in turn are believed to be more directly linked to human capital development (Bolger et al., 1988). Thus, it is hypothesized that: