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Marcello comments on AndrewH's observation and opportunity costs - Less Wrong
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Increasing the payoff of begging just increases the number of beggars until the average wage once again falls to the point where it is just marginally unattractive - or so I've heard. I think someone once suggested that if you visit a poor country and want to help, do not under any circumstances give money to beggars; find someone who seems to be doing something productive, and give the money to them.
I recently visited Los Angeles with a friend. Whenever we got lost wandering around the city, he would find the nearest homeless person, ask them for directions and pay them a dollar. (Homeless people tend to know the street layout and bus routes of their city like the backs of their hands.)