We exploit an employer-employee matched data to study the impact of import competition on the reallocation of workers across firms and wage movements. To guide our estimations, we first develop a simple trade model in which heterogeneous firms, producing under oligopolistic competition, bargain over wages with heterogeneous workers. For a given skill, the impacts of imports shocks on income vary across workers, according to productivity level of their initial employer and their status (stayer and movers). Using data on wage evolution of workers and on productivity of employers, we document that exogenous import shocks do not lead to a reallocation of employees towards more productive firms and do not yield higher wages for individuals working in high-productivity firms. Medium-skilled workers experienced large income losses due to import competition.