We propose an experimentally feasible way to generate spin squeezing i
n an ensemble of V-type atoms. The proposal involves absorption of a s
queezed light beam. and it does hot require a large solid angle to be
occupied by squeezed light. 50% of the amount of squeezing of the opti
cal field can be transferred onto spin squeezing of the excited atomic
states. The analogy with the input-output theory for quantum fields i
s used to elucidate this result. An experimental setup for generation
and detection of spin squeezing within magnetic or hf manifolds is out
lined.