"Crime is just one of many, many "social pathologies" that are over-represented among the poor: alcoholism, drug abuse, smoking, obesity, illegitimacy, etc. None of these are good escape routes from poverty. So instead of trying to explain why "poverty causes crime" or "poverty causes obesity," it makes sense to look for common causes of poverty and social pathologies.
Like what? In a paper just accepted by Kyklos, Scott Beaulier and I point to a simple candidate: irrationality. People who have biased beliefs about practical matters, and/or exercise poor impulse control, are likely to screw up their lives across the board. So it's hardly surprising that poverty and self-destructive behavior go hand in hand. Rather than being a natural response to poverty, a lot of crime can be seen as objectively self-destructive behavior that happens to have an unusually large amount of collateral damage."
Here is the link to that Kyklos paper: Behavioral Economics and
Perverse Effects of the Welfare State
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