The most common and most likely answer to this crossword clue is the 7 letter word SYCOSIS
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The straight part
We know that "Possible effect of barber’s rash" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case possible effect of barber’s rash = sycosis.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does SYCOSIS mean?
SYCOSIS noun- A pustular eruption that affects the scalp or the bearded part of the face