An AlGaInP/GaAs laser diode is disclosed in which the active region is made up of quantum wells that are sufficiently thin (less than 5 nm thick) that the transition energy increase due to quantum confinement of the carriers becomes significant. This allows the quantum well material composition to be selected for compressive strain so that the laser operates in the TE polarization mode, while still obtaining a transition energy of from 1.9-2.0 eV for 620-650 nm laser emission. Quantum barriers have sufficient thickness to confine carriers to the quantum wells. Self-pulsation may be obtained in a heterostructure that also includes a saturable absorption layer proximate to the active region and a ridge structure transversely confining absorption produced carriers in the central section of the absorber layer, while allowing lateral carrier diffusion to side regions where carriers are allowed to leave the absorber layer.