In this study we examine the long-term impact of second chance education (SCE) on incomes of poorly educated individuals who live in Sweden but were not born in a Nordic country, using data on income changes from 1992 to 2003 compiled by Statistics Sweden. Ordinary Least Squares regression analyses show that participation in SCE increased the work income of non-Nordics by a higher percentage than that of Nordics. The results also indicate that much of the effects of SCE on non-Nordics are related to increases in “Sweden-specific” human capital, rather than increases in their educational level per se, which seems to provide a form of ‘endowment insurance’ that improves their labour market position in Sweden. Relying on the theoretical framework of the Capability Approach, we conclude that such effects are related to the instrumental economic value of individuals’ capability to be educated, as well as the value of material well-being.