An analysis has been undertaken of the effect of birefrigence on the selection of polarization states of a weakly index guided vertical-cavity surface-emitting laser (VCSEL) supporting both a fundamental and a first order transverse mode, It is shown that for small index steps polarization switching due to spatial-hole burning effects can occur, For larger index steps it is found that higher order modes can emerge which are orthogonally polarized to the dominant polarization of the fundamental mode.