​A compensating wage differential is

A) ​the difference between the wage of an individual working in favorable conditions and the wage of an individual working in unfavorable conditions
B) compensation paid to an individual for working in a less desirable environment
C) premium paid to a security holder to compensate him for bearing a higher risk
D) ​Only A&B

Compensating Wage Differential

Additional wages paid to workers to compensate them for undesirable job characteristics, such as poor working conditions or long hours.

Unfavorable Conditions

Circumstances that are not conducive to success or are disadvantageous to achieving goals.

Wage

The fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee.