Beyond Legal Recognition: Comparative Analysis of Gender-Diverse Labor Market Exclusion in Hungary and Bangladesh

Abstract Introduction Despite increasing legal recognition of gender-diverse identities, substantial gaps remain between formal rights and labor market inclusion. This study investigates how gender-diverse individuals in Hungary and Bangladesh experience labor exclusion, despite symbolic recognition or legal rollback. Methods A comparative qualitative design was employed, comprising 46 in-depth interviews with gender-diverse individuals and key stakeholders between 2023 and 2024. Additionally, qualitative document analysis of legal frameworks, employment policies, and media discourses contextualized the institutional and cultural landscape in both countries. Results The study reveals novel insights into non-binary labor market exclusion by showing how legal recognition or erasure fails to secure substantive inclusion (legal visibility and structural blindness), and how administrative systems actively reproduce exclusion (bureaucratic exclusion). It also highlights adaptive strategies of gender-diverse individuals, including engagement with informal labor and community networks (strategic withdrawal and survival), and demonstrates the previously underexplored role of socio-cultural norms and media in shaping employability (cultural narratives and everyday negotiations). These findings underscore exclusion as a multidimensional phenomenon, integrating legal, institutional, and cultural mechanisms. Conclusion Legal reforms alone are insufficient for labor inclusion. Gender-diverse individuals face persistent structural, administrative, and cultural barriers. This study links legal frameworks, bureaucratic practices, and cultural narratives to systemic exclusion and provides a comparative lens across Bangladesh and Hungary. Policy Implications Beyond legal recognition, effective interventions require inclusive administrative procedures, workplace policies, targeted employment programs, and public awareness initiatives to address structural and cultural barriers, ensuring equitable labor access for gender-diverse populations.