We investigate the mechanisms by which high growth temperature spacer layers (HGTSLs) reduce the threshold current of 1.3-/spl mu/m emitting multilayer quantum-dot lasers. Measured optical loss and gain spectra are used to characterize samples that are nominally identical except for the HGTSL. We find that the use of the HGTSL leads to the internal optical mode loss being reduced from 15 /spl plusmn/ 2 to 3.5 /spl plusmn/ 2 cm/sup -1/, better defined absorption features, and more absorption at the ground state resulting from reduced inhomogenous broadening and a greater dot density. These characteristics, together with a reduced defect density, lead to greater modal gain at a given current density.