What is a compensating differential? Give an example.

A compensating differential is

A$.$ when higher wages are paid to compensate a worker for unpleasant aspects of a job, such as when workers are paid higher wages for dirty work.

B$.$ when higher wages are paid to compensate a worker for unpleasant aspects of a job, such as when workers are paid higher wages for safer work.

C$.$ when a person is paid a lower wage or excluded from an occupation based on an irrelevant individual characteristic such as gender.

D$.$ when workers underestimate the true risk of their job, such as when workers refuse to believe their job is hazardous.

E$.$ when a person is paid a lower wage or excluded from an occupation based on an irrelevant individual characteristic such as a person being dirty.