Can a Custom C# object contain a property of the same type as itself?

If I have created the following Employee object (simplified)...

 public class Employee
    {
        public Employee()
        {       
        }

        public String StaffID { get; set; }
        public String Forename { get; set; }
        public String Surname { get; set; }
    }

... would it be acceptable to have another property in the Employee object with a Type also being Employee to hold their Manager's details (as shown below)?

 public class Employee
    {
        public Employee()
        {       
        }

        public String StaffID { get; set; }
        public String Forename { get; set; }
        public String Surname { get; set; }

        public Employee Manager { get; set; }
    }

Also, what is the best way to instantiate the Employee object for the Manager property? Obviously including this.Manager = new Employee(); in the constructor will cause an infinite loop. Would a Manager class that inherrits from Employee be the best way (even though all the properties would be identical)?