History and scholarship
Smith (1776) and Rosen (1974) on compensating differentials; Woodbury (1983) on wage–benefit substitution; Barringer and Milkovich (1998) on flexible benefits; Thaler (1985) on mental accounting.
Key points
Rules set allocation and carry-over; whether points count as ordinary wages or severance has been contested—check current case law. Laws, programmes, visa rules and hiring practice change; check official notices, current law and actual postings.
In practice
Compare usage limits and effects on take-home pay and severance.
FAQ
- Are points wages?
- Depends on case law.
- Cash out leftovers?
- Per company rules.
Sources reviewed: 2026-10-26
References
- Smith, A. (1776). An Inquiry into the Nature and Causes of the Wealth of Nations. W. Strahan & T. Cadell.
- Rosen, S. (1974). Hedonic prices and implicit markets: Product differentiation in pure competition. Journal of Political Economy, 82(1), 34–55.
- Woodbury, S. A. (1983). Substitution between wage and nonwage benefits. American Economic Review, 73(1), 166–182.
- Barringer, M. W., & Milkovich, G. T. (1998). A theoretical exploration of the adoption and design of flexible benefit plans: A case of human resource innovation. Academy of Management Review, 23(2), 305–324.
- Thaler, R. (1985). Mental accounting and consumer choice. Marketing Science, 4(3), 199–214.
- 고용24(고용노동부). https://www.work24.go.kr
- 국가법령정보센터. https://www.law.go.kr