Basic Question: What about happen if scientists discovered a way to prevent or dramatically reduce our need for sleep?
Let's say we have a normal earth with current technology, but with one major difference. Scientists have found a way to condense the need to sleep from the usual 8+ hours to an average 30 minutes a day without any negative side effects of sleep-deprivation. (Average meaning they can sleep for an hour every other day and be fine. Sleep cannot be delayed for more than a week.) Instead of spending 56 hours a week sleeping, it's reduced to a less than 4 hours.
Based on this question, it seems the general idea is that it would lead to a dramatic increase in the service industry, as they would have to be available to cater to people who are now awake almost 24/7. But what happens to the rest of the people or jobs that usually have set cycles that are related to sleep cycles?
Specific Focus: How do the following change?
The work day: If people usually work 40 hours but now have more time to offer, they're probably going to work more, but there isn't a need for sleep to break the cycle of work. How long would people work in a single sitting and what would the pattern be? (IE: Why not work 16 hours a day, with 30 minute breaks every 4 hours? Is that too much? Would 12 hours a day be better?)
Similarly, what would happen to schooling? Would the curriculum be condensed into less time where people can graduate regularly within 3 years? Does school still start at 8 am and end early?
Why I'm asking this:
I'm trying to understand the limits of how much work and studying can be done in a day before you can't do much more, if you assume sleep isn't much of a factor. With the additional time to be productive, I would assume everything knowledge/technology based is accelerated. Is there another limiting factor to a human's capacity to be productive I am missing that I should consider?
EDIT: based on the comments with CortAmmon
You can assume that all needs for breaks and other relaxation can be accommodated within the 30 minutes of sleeping a day. So if you feel tired or like you need to relax, a simple 5 minute nap will suffice. So long as you get an average of 30 minutes at any point during the day, you can function like normal (your body feels well rested, you are mentally alter, etc.) so long as no other factors affect you.