Main Question
Can you include a dichotomous independent variable in a random slopes & intercepts model? Or does the dichotomous nature of the variable violate any assumptions of random slope GLM models?
Context
I am examining incident-level data of protests in Europe. I have a dichotomous variable that indicates whether a given incident was primarily concerned with immigration, and I am trying to estimate whether immigration leads to protesters to escalate their protests into riots. As such, I am estimating the correlation of a dichotomous DV (escalation) with a dichotomous IV (immigration). The data is structured at the incident-level, and I am including administrative districts and countries as levels.
When I run the models with just random intercepts, immigration is strongly correlated with escalation. But when I include random slopes, that significance drops away. I'm confused by this, and wondering whether I'm violating multilevel GLM assumptions by including random slopes with a dichotomous IV.
Thank you!