We investigate to what extent worker heterogeneity explains the well-known wage and productivity exporter premia, employing a matched employer-employee data set for Norwegian manufacturing. The wage premium falls by roughly 50 percent after controlling for observed and unobserved worker characteristics, while the TFP premium falls by 25-40 percent, suggesting that sorting explains up to half of these premia. Recent trade models (e.g. Melitz, 2003) emphasize the role of within-industry reallocation of labor in response to various shocks to the economy. An implication of our work is that aggregate productivity gains due to reallocation may be overstated if not controlling for sorting between …rms and workers.