For example if you are an immigrant, based on your home country, you may have an identity assigned to you by the destination society even if it isn’t factual. You might ignore it and remind yourself not to care too much about it (try to keep your identity small) but when you have a harder time finding an apartment even when you’re qualified compared to a local, you won’t be able to ignore it anymore. Or if you support a certain president because of economic policy you’re assumed to be racist by some other group of people who might start to treat you like one.
You don’t always have the luxury and I think this is a big point missing from the article.