The answer to this is "it depends". Some use coils embedded under the road (often used at highway on-ramps in Long Island, for instance).
The more modern scheme is a camera in the traffic light that exploits the highly reflective license plate on a car to detect if the intersection is occupied.
I read something - here maybe - about a motorcyclist who was tired of not triggering this type of detector. He put a strip of orange reflector tape on his helmet and all was well.