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The polarization stability of 850-nm GaAs-based vertical-cavity surface-emitting lasers (VCSELs) under dynamic operation was investigated by comparing the characteristics of VCSELs grown on B and  GaAs substrates. Significantly larger suppression ratios of the two orthogonal polarization modes was obtained for VCSELs on B substrates than those on  substrates under zero-bias modulation. Time-dependent orthogonal polarization suppression ratio measurements also showed that the polarization direction was more stable in the VCSEL on B substrates than that on  substrates. Error-free transmission was realized from VCSELs on B substrates with and without a polarizer in both back-to-back and 100-m multimode fiber transmission.