We present a simple model of absorption and gain spectra in highly excited
semiconductor systems that incorporates interactions between electrons and
holes. The scattering of the recombining electron-hole pair by charge fluct
uations in the plasma is treated to infinite perturbation order by summing
the corresponding cumulant series. We further show that the lowest cumulant
in our expansion is simply related to the self-energy operator in the GW a
pproximation. Our results therefore predict correctly the energy gap renorm
alization and the proper line shape of the emission spectra, including the
exponential behavior of the spectral edge in the low-energy limit. Numerica
l results obtained within the plasmon pole approximation match experimental
data in heterojunction lasers without adjustable parameters. Our procedure
is sufficiently accurate and simple that it can be used in practical model
s of linear and nonlinear gain.