Carragher thinks the presence of foreigners is impeding the development of young English players.
The defender has hit out at the Premier League for not protecting the home-grown youngsters coming through the ranks.
"Everyone wants to play in the Premier League now. Players at our academy don't get a chance," he said. "Our academies are not just full of local players. They are full of foreign players too.
"That's a bit of a problem for me.
"I think no foreign players should leave their country until 18 or maybe 21 and I think I think the academies should be for local players."