This work analyzes the relationship between real salaries and the balance of payments in Latin America from 1980 to 2011, developing a theoretical discussion of the link between these variables. It also describes how improved external accounts over the past decade have been accompanied by real salaries below 1980s levels. The empirical portion of this study uses Thirlwall’s model to calculate the growth of the potential regional product subject to external restrictions, concluding that an improved balance of payments and greater international reserves would create leeway to raise regional wages.