There has been a long-lasting debate over whether increasing ethnic diversity undermines support for social welfare, and whether this conflict thesis applies not only to the United States, but also to European welfare states. In their 2016 ASR article, Schmidt-Catran and Spies analyzed a panel (1994 to 2010) of regional units in Germany and concluded that this thesis also holds for Germany. We argue that their analysis suffers from misspecification: their model specification assumes parallel...