The traversal of an elliptically polarized optical field through a thermal vapour cell can give rise to a rotation of its polarization axis. This process, known as polarization self-rotation (PSR), has been suggested as a mechanism for producing squeezed light at atomic transition wavelengths. In this paper, we show results of the characterization of PSR in isotopically enhanced Rubidium-87 cells, performed in two independent laboratories. We observed that, contrary to earlier work, the presence of atomic noise in the thermal vapour overwhelms the observation of squeezing. We present a theory that contains atomic noise terms and show that a null result in squeezing is consistent with this theory.