Yes. You will want to make sure the paper face is against the subfloor so there's no gaps, and if possible, fill the joist cavity for the maximum amount of insulation.
Compressing insulation isn't recommended; the effective R-value of compressed insulation will be approximately equal to the same thickness of uncompressed insulation. In other words, R-19 (5-1/2") compressed to 3-1/2" will result in about R-13, the value of 3-1/2" insulation.
In addition to insulating, you will get far greater benefit by sealing any penetrations to the outside. They say that the typical old house has so many holes that if you added them all up you could drive a truck through it.
The "Senior Member" designation under my name doesn't mean I know a lot, it just means I talk a lot.I've been a DIYer since I was 12 (thanks, Dad!). I have read several books on various home improvement topics. I do not have any current code books I can refer to. I was an apprentice plumber for two years.