In the book The Two-Income Trap: Why Middle-Class Parents Are Going Broke) by Warren and her daughter, she states the following in chapter 1:
If two-income families had saved the second paycheck, they would have built a different kind of safety net—the kind that comes from having plenty of money in the bank. But families didn't save that money. Even as millions of mothers marched into the workforce, savings declined, and not, as we will show, because families were frittering away their paychecks on toys for themselves or their children. Instead, families were swept up in a bidding war, competing furiously with one another for their most important possession: a house in a decent school district. As confidence in the school system crumbled, the bidding war for family housing intensified, and parents soon found themselves bidding up the price for other opportunities for their kids, such as a slot in a decent preschool or admission to a good college. Mom's extra income fit in perfectly, coming at just the right time to give each family extra ammunition to compete in the bidding wars -- and to drive the prices even higher for the things they all wanted.
Could someone provide some references for this? I'd like to see when this happened, and some evidence. And is this what economists call a "bubble"?