Compensating differences in wages:

A) compensate workers for differences in their human capital.
B) are wage differences that compensate for differences in the desirability of jobs.
C) describe the tendency for the wages of all occupations to adjust to the median level.
D) do not exist if jobs have different nonmonetary characteristics.

Compensating differences in wages refer to wage differences that are meant to compensate employees for differences in the desirability of jobs. These differences are usually due to variables such as working conditions, job hazards, and physical location. The purpose of compensating differences is to make up for the added costs or risks associated with jobs that are less desirable than others.