Consequences of Labeling, There are many consequences of Labeling like low self esteem, creating stereotypes, and could lead to social exclusion. Take example stereotypes, it can often lead to prejudice which are formed opinions about a person that are not based on actual experience or reason and could lead to favoring one person or group against another. And social exclusion could lead to anxiety, fear of rejection, low self esteem, and many more I myself have faced. But not all labeling is bad, some could aid people in understanding differences in needs, culture, and personalities. Labels can also reflect positive characteristics, set useful expectations, and provide meaningful goals. But this could also lead to misunderstandings and stereotypes.