Put simply, midgets are people who are born small but maintain proportionality. Dwarfs are a result of birth defects, and don't necessarily have proportionality in their bodies.
A midget is similar as a dwarf in a way that they are both small of lenght. But a midget is human while a dwarf is not. A dwarf is a magical creature that doesn'te exist while a midgets do exits. They are just people who never grew as much as others.