Poverty aversion or inequality aversion? The influencing factors of crime in China

Abstract

This paper aims to understand whether and how poverty aversion and inequality aversion affect the criminal behaviors. We analyze the relationship between the three variables through a theoretical model and an empirical model. The panel data of 27 provincial-level regions in China were collected for testing the hypothesis. The investigation revealed: 1. Inequality significantly increases crime, while the poverty reduction does not reduce crime. 2. The widening consumption gap between urban and rural residents may be the cause of crime, the effect is more significant for visible consumer goods. 3. The excessive consumption difference between the rich and ordinary people may lead to crime. 4. The increasing inequality of distribution between the state and the people has a positive impact on crime too. The research shows that the Chinese residents are not affected by poverty but by inequality in the choice of crime.