LogFAQs > #892868906

The proper term is "little person".

Little People of America, the worlds oldest and largest dwarfism support organization and an international, membership-based organization for people with dwarfism and their families, advocates to abolish the use of the word midget. The word midget was never coined as the official term to identify people with dwarfism, but was created as a label used to refer to people of short stature who were on public display for curiosity and sport. Today, the word midget is considered a derogatory slur. The dwarfism community has voiced that they prefer to be referred to as dwarfs, little people, people of short stature or having dwarfism, or simply, and most preferably, by their given name.
http://www.lpaonline.org/the-m-word