Status Effects change the base attributes of the Player. These either improve or impair the Player, usually an object with have both good and bad effects and it is up to the Player to decide wether or not an object is worth using.
The major contribution to Status Effects is clothing; For example the Football Helmet, which reduces knockback but also reduces speed and restricts Player vision.
Some objects offer purely negative or positive effects, for example Cargo Shorts increase speed while Cargo Pants only reduce it.