In our study of the dependence of the quantum efficiency of In0.7Ga0.3As/InGaAsP strained-layer multiple-quantum-well lasers emitting at wavelength of 1.5 mum on the confinement structure, we found them to have an internal efficiency of 91%. From the dependence of the reciprocal of the quantum efficiency on the cavity length, we deduced that the absorption loss caused by carrier overflowing into the confinement layer reduces the external differential efficiency and the nominal internal efficiency.